GBP/USD Slower But Still Bullish

Doug Rosen

This pair continues to make headway from its recent double bottom.  On the weekly, the stochastics is in the oversold zone prepping to cross up and on the daily chart the stochastics has already crossed up. 

GBP/USD Daily Chart - October 11, 2011

The 5 ema has crossed above the 13 ema and price has busted and retested the 21 ema and continues to rise.
  The upper Bollinger band is pointing down however this could be a small problem.  Moving over to the 4 hour chart it is obvious that the 4 hour 144 ema that forced traders to take profit on their long trades yesterday did cause price to fall a bit and fib.  Price does however continue to look bullish and I am have no doubts that if price does fall a bit it will get picked up by the 4 hour 13 ema and keep rising up. 

GBP/USD 4 Hour Chart - October 11, 2011

Moving over to the 1 hour chart price has broken the weekly M3 and it does look like the 5 will cross above the 13 and 21 ema's.
  Stochastics is in the oversold zone so price is bound to rise.  It is just below last week's high, which has already been broken as of yesterday.  Moving onto the 15 minute chart I see that price has come into contact with the 15 minute 144 ema and the only thing that seems to be preventing price to take off is the narrow Bollinger bands.  When they open, price should continue to rise.  I think this pair has slowed down a bit since yesterday but does continue to remain bullish.

 

GBP/USD 1 Hour Chart - October 11, 2011

 

 

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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