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GBPUSD: Broke the trend line, signal of possible trend reversal?

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GBPUSD: Broke the trend line, signal of possible trend reversal?
Friday, April 18th, 2008 @ 2:32 am by Setyo Wibowo

About Setyo Wibowo:

Setyo Wibowo Living in East Java, Indonesia and holding International Relations degree, Setyo Wibowo began his forex trading career by joining Fortune Channel Investment in 2000 as a market analyst, while learning to trade forex independently on his own. Driven by his desire to share his trading experiences and ideas, Setyo joined the FX Instructor team in 2008. Setyo Wibowo is now living in Mojokerto, East Java, Indonesia.

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Fri, 18th of April, 2008
By Setyo Wibowo (analyst@fxinstructor.com)

GBPUSD Outlook
Yesterday, the Sterling fight back against US Dollar, made more than 200 pips movement. From fundamental point of view, some believe that this is caused by a report that BOE may announce a plan to help the British economy/financial. From technical point of view, I am forced to change my model to mixed with upside bias, since the pair already broke the trend line (see Chart #1). We will see in days ahead, whether this is valid or false trend line break out caused by temporarily market sentiment as a reaction to BOE plan. On the daily chart, CCI is about to cross 100 line. This could be a warning for possibly further upside movement and even change of GBPUSD trend direction. The key level is 1.9990 area (61.9 % Fibonacci retracement from 1.9336 to 2.0397)

Chart #1

GBPUSD Daily Supports and Resistances:

  • S1= 1.9749
  • S2= 1.9603
  • S3= 1.9516
  • R1= 1.9982
  • R2= 2.0069
  • R3= 2.0215

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