Wednesday, June 8, 2011

Breakout (2011-06-08 GBP/USD analysis)



Above is the 4-hour chart of GBP/USD. From the chart, it seems like the pound is going to surge crazily again.

On the above chart, I have identified several lines. Most influential ones are the solid lines in green, blue and purple, but after the break out, the blue and purple lines are relatively useless at this stage.

The two green lines were resistances, and have become support now. These lines would be support when sterling retreats.

So this time I expect GBP to surge to the high in late April. Ultimate support would be at the horizontal blue line at around 1.630.

Good luck.

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