GBP/USD intraday technical levels and trading recommendations for December 22, 2014 Overview: The GBP/USD pair has been moving downward respecting the depicted bearish channel since mid-September when the ongoing channel was initiated. The price zone of 1.5890-1.5870 constituted a transient daily support that paused the bearish movement for a few days. However, bears quickly managed to push lower. Failure of the market to defend the price zone of 1.5890-1.5900 allowed bears to push towards the support level located around 1.5600. The GBP/USD pair looked quite oversold after such a long bearish swing off 1.6500. That is why bullish correction was anticipated around 1.5600 as it is a prominent WEEKLY support corresponding to multiple previous tops established back in May and June 2013. That is why the market meets prominent bullish rejection each time bears push below 1.5600 - 1.5580 Bullish fixation above the price level of 1.5760 (bullish breakout of the daily bearish channel) exposes the price levels of 1.5880 and 1.5950 for retesting. However, less probably, a break below the recent bottoms established around 1.5580-1.5540 renders the current consolidation range as a bearish flag pattern with projected target at 1.5310 like what happened back in October. Trade Recommendation: Wait for bullish fixation above 1.5760 for a LONG entry with SL as daily closure below entry levels. TP should be located at 1.5800 and 1.5880. Otherwise, its recommended to stay out of the market until the next destination of the GBP/USD pair is determined. USD/CAD intraday technical levels and trading recommendations for December 22, 2014 Overview: Three months ago, the price levels around 1.0620 (the lower limit of the depicted chart) initiated the current strong uptrend within the depicted daily channel. Successive higher highs and lows are being established within the channels limits. As anticipated, the bullish breakout above 1.1440 allowed bulls to push towards 1.1650 where the upper limit of the bullish channel is located as well as 61.8% Fibonacci level of the previous prominent bearish swing. During the past few weeks, the USD/CAD pair established a temporary consolidation zone between 1.1430-1.1330 and recently around 1.1480, the bullish breakout above which allowed bulls to reach new highs around 1.1540 and 1.1670. The price zone of 1.1430-1.1460 remains the nearest SUPPORT zone for the current prices. It corresponds with the lower limit of the daily channel as well as the previous high that goes back to November. Persistence above this zone signaled the bullish tendency towards 1.1660-1.1690 (significant RESISTANCE zone). The price level of 1.1650 (which was our bullish final target) roughly corresponded with the upper limit of the bullish channel as well as 61.8% Fibonacci level. Long positions should have been left already. Trading recommendations: Risky traders should look for SHORT positions around the price level of 1.1650. SL should be located above 1.1700. Conservative traders should be looking for a pull-back towards 1.1440 for a LONG position. SL should be set as daily closure below 1.1400.
Posted on: Tue, 23 Dec 2014 07:25:36 +0000
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