GBP/USD Breakout to Downside Developing

Doug Rosen

By: Doug Rosen

Yesterday the GBP/USD made its way up to the daily 21 ema overlapped with the 38.2 fib then dropped and is still dropping. This just goes to show the power behind fibs and ema's especially when they are overlapped with each other. Today price opened just below the 13 ema and is already slightly below the 5 ema.

GBP/USD Daily 12/6/11

On the 4 hour time frame price is sitting on the bottom of a triangle trap that has been respected several times already. On top of that price is riding below the 5 ema and the lower Bollinger band is opening up to the downside. If a breakout to the downside below support was to occur, it will most likely be today and very soon. Price is flat against support but dynamic resistance in the form of ema's is pressing down against price which will most likely force it downward and break support.

GBP/USD 4 Hour 12/6/11

On the hourly time frame price is riding the 5 ema downward and has made its way below the mighty 144 ema which has also been crossed by the 5 ema to the downside. The lower Bollinger band is open and pointing down and price is currently sitting on the weekly central pivot point which I expect to be broken today.

GBP/USD 1 hour 12/6/11

Finally, on the 15 minute time frame price is riding nicely along the ema's to the downside. Price has bounced off the daily M2 pivot point and this may very well be the pullback opportunity to enter a short, however, the party hasn't started yet and if there will be a bearish breakout and a down day for this pair, there will be plenty of safe opportunities to enter a position.

GBP/USD 15 minute 12/6/11

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.

Did you like what you read? Let us know what you think!

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

0 User comments

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

Read more
Add new comment
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.