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Old 06-03-2016, 09:42
piplaser piplaser is offline
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Default Intraday technical levels and trading recommendations for GBP/USD for 7 March 2016

In November 2015, a bearish engulfing weekly candlestick closed below the level of 1.5200 (the neckline of the Head and Shoulders pattern). This enhanced the bearish side of the market in the long term.

Extensive bearish pressure has been applied against the demand levels of 1.4620 and 1.4360. Both of them were broken to the downside.

Shortly after the GBP/USD pair moved below 1.4220, evident signs of bullish recovery were expressed around 1.4075. Hence, previous weekly candlesticks closed above 1.4220 and 1.4360 again, indicating strong bullish demand.

Bullish persistence above 1.4360 was mandatory to maintain enough bullish strength in the market. The first bullish target was seen at 1.4615.

However, recent bearish rejection was expressed at 1.4615 (a broken weekly demand level). It is currently acting as a strong supply level.

The price zone of 1.4300-1.4200 remains a significant demand zone to be watched for a possible buy entry similar to what happened few weeks ago.

On the other hand, If the current weekly candlestick maintains its bearish closure below the depicted demand zone (below 1.4200), the next weekly demand level will be located at 1.3850 (a historical bottom that goes back to March 2009).
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