GBP/USD Bullish with Resistance

Doug Rosen

By: Doug Rosen

I start my analysis for this pair looking at the daily chart. It appears quite bullish. The 21 ema seems to be in control of price and yesterday price made a fib overlapped with the 21 ema and bounced up. There are a few problems however. The stochastics is in the overbought zone crossing down and we have a 233 ema in the way to contend with. The USD is not starting out so strong which is helping out the GBP a bit but the GBP is weaker than the CHF and the EUR and the time I am writing this analysis. This pair has been making a series of higher highs and higher lows but not with such high power. Moving on to the 4 hour weekly pivot chart price is caught in the middle just between the central pivot at 1.5837 and the M3 at 1.6121. Price looks like it does want to rise up but the 21 and 13 ema's are just above price and adding friction. The stochastic is in the oversold zone crossing up and this hopefully will help this pair rise.

GBP/USD 4 hour chart - November 2, 2011

On the hourly weekly pivot chart price is looking bullish. The stochastics is pointing up and the 5 ema has crossed above the 13 and 21 but we have some overlap just above, the 144 and 55 ema's and the upper Bollinger band as well and just above that is the M2 so this can all slow or stop price from moving onward.

GBP/USD 1 hour chart - November 2, 2011

Finally, onto the 15 minute daily pivot chart price is trying to ridet he 5 ema up and the stochastics is pointing up. Price is above the central pivot at 1.5975 and the upper Bollinger band but is approaching the 233 ema and the M3 1.6018 and this will surely add tot he rest of the junk that is in the way. This pair is bullish but a lot of resistance stands in the way.

GBP/USD 15 minute chart - November 2, 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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