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Saturday, November 6, 2010

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Daily Forex Update: GBP/USD

3 of November, 2010

by, Dima Chernovolov

GBPUSD is continuing to rise within the Rising Wedge price formation on the daily chart.

This price pattern demonstrates significant Uniformity and Clarity – both rated at 6 bars by the Autochartist.

The pair is trading around the round price level 1.6000 that should be cleared persuasively before the uptrend can continue.

There is an indication on the lower time-frame 30-Minute chart that this could happen soon.

20101103dailyfximage1

The 30-Minute Cable chart shows exceptionally clear Ascending Triangle price pattern that has just been completed.

The Clarity of this pattern is rated by the Autochartist at the maximum 10 bar level.

This price pattern reverses the strong preceding corrective down impulse – rated at 8 bars by the Autochartist.

The price is expected to rise toward the area located above the recent heights – set between the price levels 1.6063 and 1.6098 – which should add momentum to the uptrend.

20101103dailyfximage2

Opening a buy position at the level of this breakout would entail placing the stop-loss at the distance of 2 to 3 EPRs (Expected Price Range) below the upper Ascending Triangle line.

The value of one EPR for the 30-Minute GPBUSD chart is equal to 18 pips based on the most recent price data as is shown below:

20101103dailyfximage3

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