01.05.201210:33 Forex Analysis & Reviews: EUR/USD Wave Analysis for May 1, 2012

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Now, the GBP/USD is showing strong wekaness in the major time frames, as the pair is currently finding support at the level of 1.5247. Bears could continue dominating the main bias, and if GBP/USD breaks that support zone, the next target would be the level of 1.5086. Moreover, we cannot discard a rebound at the current territory because the pair is oversold on the lower charts.

On the H1 chart, the GBP/USD is forming a lower low pattern in order to reach the support level of 1.5202 in the short term. Also, the 200 SMA is showing us the current bears power, as it's pointing to the downwards. The price action in this time frame probably is forecasting an imminent retracement to 1.5270 in the coming hours.

Daily chart's resistance levels: 1.5761 / 1.5957

Dailychart's support levels: 1.5491 / 1.5247

H1 chart's resistance levels: 1.5340 / 1.5413

H1 chart's support levels: 1.5257 / 1.5202

Trading recommendations for today: Based on the H1 chart, place short (sell) orders only if the GBP/USD pair breaks a bearish candlestick. The support level is at 1.5257, take profit is at 1.5202, and stop loss is at 1.5313.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.