Entering text into the input field will update the search result below

Forex4you Technical Analysis 28 January 2011

Jan. 28, 2011 7:09 AM ET
LigaForex profile picture
LigaForex's Blog
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.
EUR/USD: Technical Analysis

Little changed in the structure, the price is consolidating in a sideways range, although it did manage to test a new local maximum at level 1.3755, which gives more reasons to expect the "bulls" to continue their trend and even reach target 1.3780/1.3800.  Indicators show, that the "bullish" potential is weakening, suggesting a large-scale pullback downwards, as soon as the above mentioned level is tested. A decline below support level 1.3440/00 will be the first sign for the "bearish" trend. A serious signal to the change of moods would be support 1.3540/00 breakout. If resistance 1.3780/1.3800 is breached and the price holds above, we'll be expecting a stop at level 1.3860/50.

GBP/USD: Technical Analysis

Recent forecast that the "bulls" may not be able to rise above the range 1.5960-1.5930 turned out to be correct. The price failed to hold above this barrier, so it pulled back lower. The price met support at the uptrend channel line (blue lines) and it's currently consolidating at 1.5880/90. Indicators are turned up, so the "bullish" trend is likely to continue. Besides, the "bearish" attempts to breach the uptrend channel line fail, which makes further up trend even more of a possibility. To be sure, that growth to 1.6270/60 will take place, resistance 1.6060/70 should be breached first. But to make it happen, the price has to rise above 1.5960-1.5930. If the price breaches and holds below support 1.5750/40, we'll be expecting a down trend to commence.

Analysis by: Forex4you.com written by Forex4you analyst

Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.