Market Overview

GBP/USD Technicals – Evening Star Seen Above 1.60

Hourly Chart

http://forexblog.oanda.com/mserve/GBPUSD_091112H1.PNG

Evening star appeared immediately after price breached Yesterday's High and Psychological level of 1.06. Currently we're heading towards the consolidation zone of 1.597 – 1.598 with L3( around 1.596) supporting.

http://forexblog.oanda.com/mserve/GBPUSD_091112M5retake.PNG

Similarly, on the 5 min Chart, we're looking at another evening star. Interestingly, there is also a Morning Star potentially forming right now ( Morning Star not confirmed as we require current candle to close). Location of the potential Morning just along 1.558 also goes to show the support strength of 1.557 – 1.558 consolidation, with 1.60 once again providing resistance should price reach there again. That being said, candlestick patterns on 5 min chart should be read with caution as length of each candlestick is short, hence greatly affected by small amount of volatility (which is wild especially during Market Opening hours such as now) which may distort the overall picture.

 

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Posted-In: News Forex Global Markets

 

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