GBPUSD

waverider2 wrote: HI Libero - it seems that this chart pattern is actually called the Morrocan Hat pattern

you almost had me there man! It does look like a fez to be fair.

Your 15mins chart looks like its completed a double bottom - from an intra-day point.

Finding the GBPUSD price action somewhat emotional as I hold USD (part of work pays in USD but my "liabilities" are in GBP).

Can't we just go back to bartering with cattle, bushels and gold coins?

Charts attached:

dl.dropbox.com/u/4385922/GBPusd.png

Bullish divergence plus engulfing candle which is taking it up

HI Libero - it seems that this chart pattern is actually called the Morrocan Hat pattern

Can be very bearish and then bullish then bearish lol.

on a more serious note - I have been analysing the 15 mins chart - and it seems pretty bullish (again)

I might be seeing things, but to me there looks like a very crude Head & Shoulders set up on the hourly.




Like I said, I might be seeing things (on another day, it might be a head and shoulders shampoo bottle but hey ho!)

Either way, Cable took another hit with its latest CPI readings (admittedly this news causes only a short term downward spike, but if the general sentiment is bearish, it could just compound Sterling's misery!)

One final note, notice that since the 6th of Feb the 20MA was acting as support? but this recently turned into resistance.

That's why I only ever trade the first attempt of a trend line.
As can be seen from your chart it bounced on the first attempt but an attempt after a few days latter will increase the chances of a breakout.
Also the US Dollar index has recently bounced of the neck line of the head and shoulders and now has even broke a short term down trend line. Views can change so quickly on the currency market.

The bounce off the uptrend support seems to have been quite short-lived. Hope profit was banked and stops placed. Looks now like it could be a bit bleak for the GBP in coming weeks as that was the uptrend from 2009 lows:



dl.dropbox.com/u/20815047/GBPUSDdaily12_02_13.gif

I'll wait now to see where this closes. If it closes below that trendline then I'll look to short it on a backtest at some point.