Daily Analysis – 25/10/2010

ForexPros Daily Analysis October 25, 2010

Forex Analysis For GBP/USD and GBP/JPY

1) Forex Trading Signal For GBPJPY

Forex Trend Analysis

The overall trend for this currency pair is DOWN for the week

Forex Technical Analysis

Weekly Chart
Similar to the movement last week, the GBPJPY pair continues to move within the trend channel and in fact testing the 127.616 previous swing low.

4 Hourly Chart
On the 4 hourly chart, you will also see a trend channel in action. At the time of writing this analysis, the price has fell to test the support trend line of the trend channel.

Overall Forex Analysis
I will go SHORT for this pair but I have to make sure that the price successfully broken the trend channel before considering any SHORT trade.

Important Levels of Support To Note
• 127.077
• 126.735

2) Forex Trading Signal For GBPUSD

Forex Trend Analysis

From the trend analysis that I have done on several time frames, the trend for this pair is DOWN for the week.

Forex Technical Analysis

4 Hourly Chart
The GBPUSD on this time frame is trying to break above the resistance trend line which is at the same level as the Fibonacci 0.500. At the time of writing, the price has failed to break above and instead is being repelled by the resistance trend line.

Hourly Chart
After testing the M4 Daily pivot for 4 times consecutively, the price has fallen sharply showing the strength of that resistance level. In fact, at that level, there is also a 0.500 Fibonacci resistance which adds on to the power of that level.

Overall Forex Analysis
I will go SHORT for this pair and the best will be after it broke below the strong support at 1.56573.

Important Levels of Support To Note
• 1.56573

Forex trading analysis written by Kelvin Lee for Forexpros.

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