Bullish Price Action Expected for GBP/USD

Doug Rosen

By: Doug Rosen

Price has recently come off of a daily bottom noticeable on the weekly chart and it does look like price want to fib from its recent large move down. So far we are just above the 21.4 fib level but I expect price to head to at least the 38.2 fib level which is almost 200 pips above so I think this pair has a ways to go so I remain very bullish on this pair at the moment. We have broken above a descending trend line and the EUR/USD and the EUR/JPY seem to be in line with he same type of price action and these three pairs are closely correlated with each other I can only think bullish at this time for the GBP/USD. Pivot Points: Price is approaching the monthly M0 and I am sure it will be breached. Price has already busted above the weekly M3 and we are approaching the daily M3 which does overlap with the monthly M0 at around 1.5670 so that is an area I would expect some type of reaction but as bullish as this pair appears to be I expect price to continue to rise so I will take every opportunity i can to get into a bullish position. Price is beginning to catch a ride on the 4 hour ema and has bounced off of the 1 hour 21 ema and has busted the 1 hour 233 ema.

GBP/USD 4 Hour Chart 9/28/11


GBP/USD 1 Hour Chart 9/28/11

On the 15 Minute price is soaring away from the ema's. I expect soon a pullback which will be a great opportunity to get a position to the bullish move expected for this pair.

GBP/USD 15 Minute Chart 9/28/11

Doug Rosen
Doug Rosen is a Florida-based Forex trader who became a skilled technical trader through 3 years of intense practice and self-teaching. He now coaches a live trading room and analyzes the market on forextradeplans.com.

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