FX:GBPUSD   British Pound/U.S. Dollar
185 1 2
23/12/13
The signals of direction are pretty mixed;

However the following could be taken into consideration:

Bullish Signs:
1. Price greater than EMA8 which is above EMA50 and EMA200 --further upward signs
2. Volatility stop far away from price -- favouring the long side
3. Upward trendline in the chart is not broken
4. Ranging with new highs made last week above the support line (as seen in the chart)

Bearish Signs:
1. Diverging lines in last 3 weeks - higher highs and lower lows -- the probability of the price revisiting the lows near 1.6250 (current price of 1.6340) is quite high
2. Price is at yearly highs at regions where price dropped significantly last year

Medium term direction bias is neutral: would await for a candle with smaller wicks and larger body, either closing above the highs (long signal) or below the support line (short signal) prior deciding on the direction.
30/12/13
The bar on the 27/12 closed higher but not above the high of the 21/12 bar.
Bullishness remains but the likelihood to revisit 1.6250 is still there!
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