By: Doug Rosen
I will skip the weekly chart for this pair today and go right to the daily chart. This pair is also looking bullish to me but the GBP is not the strongest currency at the moment. The 5 ema has crossed above the 13 and the stochastics is pointing up, this is all bullish in nature. Looking at the 4 hour chart I see that we have bounced off the 55 ema which sits between the 21.4 and 38.2 fib of the recent move up. This area also overlaps with the hourly 233 and 144 ema and the hourly stochastics is pointing up and in the trade zone and the 5 ema is crossing above the 13. This is all very bullish to me.
Finally, I look to the 15 minute chart and it is also very bullish in appearance. Price has been riding the 5 ema up gracefully and the 5 has crossed the 233 ema and the stochastics wants to stay in the overbought zone which is a very bullish sign. My only concern at the moment is the daily central pivot point at 1.5605, I would like to see this level broken then I will be very enthusiastic about longing this pair. So, a break above 1.5610 would be the optimum area to look for a long trade for this pair today. Expect a bearish reaction at 1.5620 which will be a decent pull back zone to enter a long.
