GBPUSD Chart 7

GBPUSD - Could Be Ready For Retracement

GBPUSD - COULD BE READY FOR RETRACEMENT by DanV on TradingView.com

12 May 2015

Updates and comments

Most USD pairs weakness against USD has be very stretched have been appearing to either reverse trend or at least make noticeable retracement.

GBPUSD is not different. It is possible that the recent bottom formed in April could be significant one resulting in trend change or may be just an intermediate low. Also as it was severally oversold exasperated by uncertainties associated with the UK lection which resolved very cleanly it benefited from lifting of that uncertainty. 

However at current level it could offer opportunity to short with retracement or retest of the low in prospect. 

Technical Summary: 

1. Weekly chart shows that it has approach the median line and 38.2% retracement of the entire decline from July 2014 which could offer resistance (see chart updates and comments) 
2. Since the low in April it appears to have abc zigzag with price having just poked above the previous resistance possibly triggering stops. 
3. At a level with several Fib extensions and projections offering confluence. 
4. Accompanied by clear RSI divergence. 
5. Possible decline to 1.51 -1.50 would feasible in case of retracement or might continue all the way to retest the April low.

Warning: This is my interpretation of price action using TA approach that I consider helps me most, but could be completely wrong. Therefore as always, do your own analysis for your trade requirement and ignore my views. 

For those who appreciates my analysis, select to follow me and the chart for notification of future updates. Indicate you like my analysis by thumbs up, comments and sharing it with others. If you have an alternative idea then please be constructive and share for all to learn from. 

Thank you for taking the time to read my analysis. 

DanV

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