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09.05.201208:49 Forex Analysis & Reviews: USD/CAD Technical Analysis and Trading Recommendations for May 9, 2012

Long-term review

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The rebound continues to take place on the GBP/USD pair, finding strong support at the level of 1.4820, with a resistance placed at the level of 1.4948. The pair continues to move in favor of the overall bearish bias, as we can see it at the daily chart. The bearish structure is also showing us a potential short trade, as the GBP/USD pair is forming a lower low pattern.

During the last Friday, the pair was rejected by the resistance level of 1.4984, where the GBP/USD pair did a pullback and its trying to stay below the 200 SMA at the H1 chart now. Eventually, the pair could break the support zone around 1.4842 and fall to the level of 1.4769. That move could strength the bearish bias during this week.

Daily chart's resistance levels: 1.4948 / 1.5087

Dailychart's support levels: 1.4820 / 1.4649

H1 chart's resistance levels: 1.4921 / 1.4984

H1 chart's support levels: 1.4842 / 1.4769

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 1.4842, take profit is at 1.4769, and stop loss is at 1.4920.

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