GBPUSD TECHNICAL ANALYSIS 2nd – 8th June 2016.

Posted On 02 Jun 2016

Author: Praveen Bharadwaj, participant of the Analyst Contest

GBPUSD has been trading in a 1.47 – 1.43 range with these levels being key support and resistance throughout May. On 31^st May the pair tested the 1.47 and dropped below 1.45.The 200 SMA (red line) is providing dynamic resistance at 1.47. The 100 SMA (blue line) has a support at 1.43 which has been holding. These two dynamic levels provided by the moving averages are same as the levels which the market has tested before. A confirmed close below 1.43 will be a bearish signal and the price will go all the way to 1.40 which is another major support and also a psychological level. An important thing to be noted is the U.S Non-Farm Payrolls to be announced on 3^rd June, creating high volatility in this pair. And on other side, if a bullish supportive candle occurs at 1.43, the price will go back all the way to 1.47 again. A valid close could establish the following trade setups which might occur after the NFP data release.

Possible trade setups:

Short at 1.4250 after getting a strong bearish candle (daily close) below 1.4300. The target is 1.4050 which is a major support. Exit/stop loss at 1.4450.

Go long at 1.4400 if a bullish supportive candle (daily close) occurs at 1.43 support. The target is 1.4600 which is near to the major resistance which has been holding. Exit/stop loss at 1.4200.

Source:: GBPUSD TECHNICAL ANALYSIS 2nd – 8th June 2016.

About the Author

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