G/U is a pair which is very HARD TO predict next week.
Two events need to be examined next week for this pair are:
- CPI on Tuesday
-Fed's Bernanke speech on Thursday.
Those two events would guide G/U price. And you have to understand what event will be dominant.
So I consider GBP and USD
GBP ! USD
-Good Economy, recover good - Good data might trigger taper in December
- Monetary policies proved positive results - Labor market shows being good condition
So what is more important ?
That is FA information.
Now I consider TA information.
Firstly,I think GBP lost its rally motivation. G/U tried to touch 1.63 level. That is Gann Square Nine resistance. It's very hard to break that resistance. That is also the very very strong resistance from August 31,2011. From that day, G/U couldn't break that level.
Consequently, now is the time for USD moves the market.
Secondly, pay attention into Head and Shoulder pattern and the trend line I show on the chart.
G/U tried to break that support last week, but unfortunately, it coundn't. Even CPI of UK is good next week, I think G/U would not break that support. That is the long term support : very rigid to break.
Thirdly, G/U price now lies between 11.4% fibonacci level and 23.6% level. It has tendency to touch those two levels. I think it will touch 23.6% level.
Fourthly, Price moved into Ichimoku cloud. When G/U moves into Ichimoku cloud, it usually fluctuates greatly before escaping Cloud. I think It would escape the Cloud by moving below the Cloud.
In short, I predict G/U will be sell-off: reach to 1.58 support level. Good data from US will move the market.. Bernanke will provide more specificly about taper decision in next month before end the year.
I BET SHORT POSITION FOR G/U PAIR.
Two events need to be examined next week for this pair are:
- CPI on Tuesday
-Fed's Bernanke speech on Thursday.
Those two events would guide G/U price. And you have to understand what event will be dominant.
So I consider GBP and USD
GBP ! USD
-Good Economy, recover good - Good data might trigger taper in December
- Monetary policies proved positive results - Labor market shows being good condition
So what is more important ?
That is FA information.
Now I consider TA information.
Firstly,I think GBP lost its rally motivation. G/U tried to touch 1.63 level. That is Gann Square Nine resistance. It's very hard to break that resistance. That is also the very very strong resistance from August 31,2011. From that day, G/U couldn't break that level.
Consequently, now is the time for USD moves the market.
Secondly, pay attention into Head and Shoulder pattern and the trend line I show on the chart.
G/U tried to break that support last week, but unfortunately, it coundn't. Even CPI of UK is good next week, I think G/U would not break that support. That is the long term support : very rigid to break.
Thirdly, G/U price now lies between 11.4% fibonacci level and 23.6% level. It has tendency to touch those two levels. I think it will touch 23.6% level.
Fourthly, Price moved into Ichimoku cloud. When G/U moves into Ichimoku cloud, it usually fluctuates greatly before escaping Cloud. I think It would escape the Cloud by moving below the Cloud.
In short, I predict G/U will be sell-off: reach to 1.58 support level. Good data from US will move the market.. Bernanke will provide more specificly about taper decision in next month before end the year.
I BET SHORT POSITION FOR G/U PAIR.