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FX.co ★ Candlestick analysis of the GBP/USD for December 01

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Forex Analysis:::2010-12-01T08:44:03

Candlestick analysis of the GBP/USD for December 01

On a 4-hour graph the GBP/USD pair is rolling back after it could not break through the support level of 1.5500.
The viewpoint is still bearish, as earlier the pair formed the combination of candlesticks Bearish Engulfing that indicates the decline, confirmed further.
This combination of candlesticks appeared after the currency pair could not break out the resistance level near 1.6085-1.6096, which means that the bulls did not manage to solidify here and the bears started to increase their influence.
The breakout of 1.5841 confirms this point of view.
In case the support level of 1.5500 is broken down we expect the decline with the target to 1.5300. However, it is worth pointing out that if the resistance level of 1.5900 is breached then short positions should be closed, as it will lead to upturn to 1.6096.

Candlestick analysis of the GBP/USD for December 01

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