The pair is still keeping its current uptrend. Although the resistance of 1.6107 was crossed during last week, corrected and closed above it the following session. There is no doubt the resistance changed into a support.
Currently, the pair is standing and waiting for the strengthening of the USD expressed in several other pairs. According to our analyses, no matter how stronger the USD is, the uptrend is not expected to stop. In order to catch the opportunity created for a “Long” transaction, we suggest waiting for the confirmation of today’s trend trough the identification of an increasing configuration on One –Hour graph.
One – Hour graph: http://www.real-forex.com/charts-daily/November2010/GBP_1H_151110.JPG
The required configuration should appear when the pair will cross the 1H resistance of 1.6183 upward. Following is an option of entry order between several different possibilities:
Ø “Limit” order on “Long” position 10 pips above the mentioned resistance, meaning: 1.6193
Ø “Stop Loss” order on the last dip occurred: 1.6123
Ø 1St degree for a “Take Profit” on the following resistance at 1.6212
2nd degree of “Take Profit” on the resistance after: 1.6260
After an uptrend of two months, the pair started a decreasing process a few sessions ago. During the last two sessions, a relevant support at 1.0002 was crossed very clearly. Currently the pair is making its way to the following support at 0.9661.
Once that level will be reached, the way it will behave will determine the trend of several following sessions, and of course, the potential trades and market orders to enter:
1) Test of the support indication of close reversal, potential for “Long” trades.
2) Stop on the level. It could be better waiting for a “Parking” of about a session and a half, and then entering a “Long” order.
3) Clear and sharp breach of the support It could be safer waiting for a small correction and after the identification of a decreasing configuration on 1H graph, go “Long” along with the new trend.
Have a profitable day!
Real – Forex team