Daily Currency Report - GBP/USD

Forex Technical Analysis Reports | Written by Forex618 | Oct 01 07 04:17 GMT |

Weekly Trend direction: Bullish Weekly trend reversal level: 2.0080 Key G7 Support levels: 2.0280, 2.0200 Counter-trend opportunities: None Strategy: Whilst above the weekly trend reversal level, buy dips to support levels after an entry signal. Today's trade suggestion: The pound has followed suite with the euro and rush up higher to test the 78.6$ Fibonacci at 2.0450. Weekly momentum is clearly bullish again, and this means we shall watch for dips to buy into. Allow for some retracement to above mentioned support levels before buying, with tight stops and a target of circa 2.0600. Remember once again that the pound is at/near multi-decade highs, and this will cause volatile swings in both directions, and probably a sudden collapse later in the month as traders realise that we cannot go much higher. Aggressive traders might try counter-trend shorts between 2.0500 and 2.0600, but only on very clear spikes or reversal patterns. Summary: BUY dips to 2.0280/2.0200, target 2.0500/2.0600. Aggressive traders might try selling on signs of topping while below 2.0650. .....Read more Actionforex.com....