Wednesday, September 9, 2009

Bullish GBP/USD

Looking back at GBP/USD here on Wednesday night. I have moved my target to 1.6607 which is the R1 pivot level for today. Last night and today GBP/USD has been somewhat sideways. Looking for another run to the upside. If I look at the GBP/CHF it looks as if it has some positive divergence on the hourly. This should trade back up to the top of it's downward trend channel. Notice MACD has crossed to upside. I also am getting confluence with an Andrews pitchfork lower trendline and main pivot level with GBP/USD. If GBP/USD holds these confluent would mean upward momentum for GBP/USD. I believe we will reach R1, but then I look for either more sideways action before moving higher. Ultimately I look for GBP/USD to reach 1.6880 level in the coming days or next week. Possibly a weekly head and shoulders forming. If price can reach this level and react to the downside then I look for future downward pressure with this weekly head and shoulders pattern if formed. Let's see if I'm right?


GBP/CHF 1 hour



GBP/USD 1 hour

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