ForexPros Daily Analysis November 08, 2010
Forex Analysis For EUR/USD, GBPUSD and GBP/JPY
1) Forex Trading Signal For GBPJPY
Forex Trend Analysis
The overall trend for this pair is DOWN for the week.
Forex Technical Analysis
Weekly Chart
For the GBPJPY, the price failed to break below the support level of 126.791 last week and has move upward toward its resistance level. The trend channel resistance level is pretty strong as it has been retested several times before. (See Middle Top Attached Picture)
4 Hourly Chart
An upward trend channel has been formed on this time frame which is opposite to the trend channel formed on the weekly chart. At the time of writing, the price has hits the resistance level and is moving down.
Hourly Chart
On the hourly chart, you well see the formation of a MACD negative divergence which is a sign that the price will move down. (See Bottom Attached Picture)
Overall Forex Analysis
The MACD negative divergence on the hourly chart is in confluence with the price hitting the resistance level on the 4 hourly chart. Therefore there is a high chance that the price will move down and there is an opportunity to go SHORT.
2) Forex Trading Signal For EURUSD
Forex Trend Analysis
The overall trend for EURUSD is bullish for the week.
Forex Technical Analysis
Weekly Chart
The formation of several spinning tops and inverted hammer shows that the price is in a state of indecision and maybe looking to move back down. However the down move is being supported by a Fibonacci 0.382 level. (See Top Right Attached Picture)
Daily Chart
Last week, the price has finally fulfilled its full Fibonacci extension by hitting the 1.618 level.
Overall Forex Analysis
There are opportunities to go SHORT this week due to the reversal candlestick patterns as well as the price fulfilling its full Fibonacci run.
3) Forex Trading Signal For GBPUSD
Forex Trend Analysis
The overall trend for this pair is UP for this week as there is a strong upward trend on the hourly, 4 hourly and daily charts.
Forex Technical Analysis
Weekly Chart
There is a Gartley pattern formation on this pair and there is a trading opportunity at 1.77860. (See Top Left Attached Picture)
Hourly Chart
At the time of writing, the price has broken below a trend channel formation and it constitutes a breakout trade. However it is too late to enter any trade now and if you are interested in trading this breakout, you can wait for the price to come back to retest this trend channel.
Overall Forex Analysis
In the short run, you can trade the breakout but in the long run, it seems that the price is heading up towards the 1.77860 level and you should be looking to trade the Gartley pattern
I will keep you updated about the Gartley pattern formation again.
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Forex Trading analysis written by Kelvin Lee for Forexpros.
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