{"id":10980,"date":"2010-07-09T09:15:20","date_gmt":"2010-07-09T13:15:20","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=10980"},"modified":"2010-07-09T09:15:20","modified_gmt":"2010-07-09T13:15:20","slug":"gbpusd-price-action-reaches-turning-point","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/07\/09\/gbpusd-price-action-reaches-turning-point\/","title":{"rendered":"GBP\/USD Price Action Reaches Turning Point"},"content":{"rendered":"<p><strong>By Russell Glaser <\/strong>&#8211; The GBP\/USD has taken a pause this week while forming a rising  channel line before making its next move. Technical indicators show the  momentum of this bullish move is wavering, which could set up for a  downward move in the price of the pair.<\/p>\n<p>The cable continues to range trade  between the prices of 1.5080 and 1.5240 as volatility in the pair has  significantly fallen. The Average True Range (14) has dropped to 135  from its high of 260. Many times volatility drops off and the price  action consolidates before a large breakout move in a currency pair  occurs.<\/p>\n<p>Currently the price is contained by the short term resistance line at  1.5240. A break above this line could send the pair higher to the 23.6%  Fibonacci level at 1.5300 (R1). This is a retracement from the long  term bearish trend that began in November. Following a breach of R1, the  pair could trade higher at the next resistance level of 1.5520 (R2).<\/p>\n<p>However, this is where the bullish move may end as the price  approaches the downward sloping trend line and the 23.6% retracement  level. This technical resistance should be enough to contain the rising  price action.<\/p>\n<p>A sell signal that is forming on the MACD Oscillator also hints at a  price move lower. The momentum appears to be weakening as the MACD  histogram is negative sloping and a bearish cross is forming, indicating  the potential for downward movement in the pair.<\/p>\n<p>Price targets for a move lower in the pair will be the support level  at 1.5050 (S1), which also coincides with the lower end of the channel.  The second price target with a long term focus will be the March low at  1.4780 (S2).<\/p>\n<p>As the price approaches the long term trend line, combined with  significant resistance levels, large swings in the price can occur.  Combining the resistance levels along with the technical signal, being  short looks to be the right move.<\/p>\n<p><a href=\"http:\/\/www.forexyard.com\/blog\/en\/wp-content\/uploads\/2010\/07\/GBP_USD_Daily.JPG\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone\" src=\"http:\/\/www.forexyard.com\/blog\/en\/wp-content\/uploads\/2010\/07\/GBP_USD_Daily.JPG\" alt=\"\" width=\"595\" height=\"639\" \/><\/a><\/p>\n<p><strong><em>Forex Market Analysis<\/em> provided by <a href=\"http:\/\/www.forexyard.com\/?zone_id=1398\" target=\"_blank\">Forex                          Yard.<\/a><\/strong><\/p>\n<p>\u00a9 2006 by FxYard Ltd<\/p>\n<p>Disclaimer: Trading Foreign Exchange carries a high level of risk and                          may not be suitable for all investors. There is  a              possibility      that     you   could sustain a loss of  all   of    your         investment and      therefore  you     should   not    invest   money  that   you      cannot afford to      lose. You    should    be      aware of   all   the    risks   associated with     Foreign      Exchange    trading.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Russell Glaser &#8211; The GBP\/USD has taken a pause this week while forming a rising channel line before making its next move. Technical indicators show the momentum of this bullish move is wavering, which could set up for a downward move in the price of the pair. The cable continues to range trade between &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.investmacro.com\/fx\/2010\/07\/09\/gbpusd-price-action-reaches-turning-point\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;GBP\/USD Price Action Reaches Turning Point&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-10980","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/10980","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=10980"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/10980\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=10980"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=10980"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=10980"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}