FOREX Updates: Technical Levels For GBP/USD Today

Tuesday, May 27 Market Profile British pound can be attributed to trend day. The British pound continued to weaken against the U.S. dollar, continuing a downward trend shaping its structure. Further put pressure on the pair of positive U.S. economic data, as well as the speech of the Bank of England. On the day the fair price protection zones are located in areas VAL - 1.6811 and VAH -1.6881. POC point of control was formed in 1.6858. 

Forecast for today : In today's Asian session, the British pound was trading in a narrow sideways channel against the U.S. dollar. In the case of formation of the first prerequisites for growth, buyers will be kept an intermediate level of resistance in the POC from May 20- 1.6814, above which is a more focused level VAL May 21 - 1.6831 from which we will see a strong enough sales. If the bulls and not rest on it, the main aim of the day will be a test POC, May 26 - 1.6843 and POC yesterday- 1.6858. As for sales, the second wave of falling may be kept back support area POC May 16- 1.6790. Only after consolidation below can argue about reducing GBP/USD to new lows near POC May 15- 1.6766 and VAL on the same day- 1.6742. Farthest weekly goal now is the level of POC from April 15- 1.6721.

GBP/USD Fell Down to Support Due to UK GDP In-Line with Estimates

GBP/USD Today

The British Pound fell against the US Dollar despite UK GDP reporting in-line with estimates, as back-ward looking data may fail to support bullish outlook.

The second revision of first-quarter UK GDP figures confirmed output grew 0.8 percent, confirming previous estimates. The year-on-year growth rate reported at 3.1%, the highest since the fourth quarter of 2007.

The British Pound has enjoyed a swell in supportive monetary policy expectations and an upbeat GDP print certainly did not fall out of step with that dynamic. Despite the positive back-ward looking data, Spivak suspects whether the data will be enough to carry teh British Pound higher as there is a chance that most if it has already been priced in.

FOREX Signal and Divergence Analysis of GBP/USD

FOREX Signal Today

GBP/USD Pair performed a U-turn in favor of the dollar and began the process of a drop in prices in the direction of the correctional level Fib 100.0% - 1.6319. Emerging divergence in none of the indicator is not observed. Rebound of the pair on the level of 100.0% correction will allow traders to count on a turn in favor of the UK currency and continued growth in the direction of 161.8% Fib level- 1.7250. Securing quotes below the level of 100.0% correction will increase the likelihood of further fall in the direction of the next level of Fib 76.4%- 1.5968.

On the 4-hour chart has formed a bullish divergence, which leads us to expect a reversal in favor of the British currency and some growth in the direction of correction level 261.8% - 1.7289. Bullish divergence of the indicator CCI: last quotations below the previous low, and similar low indicator- higher than the previous. If quotes May 15 will be the last low divergence, it will be canceled, and depreciation will continue in the direction of the correctional level 200.0% - 1.6697. Securing the pair below the 200.0 % Fib increase the chances of a continued fall in the direction of the next level of correction.

FOREX Forecast for GBP/USD Today

On last trading session, market profile British pound can be attributed to trend day. The British pound rose against the U.S. dollar after weak GDP data placed enormous pressure on the U.S. currency. On the day the fair price protection zones are located in areas VAL- 1.6805 and VAH- 1.6871. Control point POC was formed in 1.6823.

Forecast for Today

GBP/USD Forecast For Today

During today's Asian session, the British pound was trading in a narrow sideways channel against the U.S. dollar. During yesterday bulls are selected and tested weekly goal area VAL from August 4, 2009- 1.6894, which now is the first level of resistance. A move above this level will open new horizons for customers in the area of ​​POC from August 2, 2009- 1.6933, and POC August 5- 1.6967. The farthest goal for today will be a test on the same day VAH- 1.6991 and VAH 6 August- 1.7031.

As for sales, they will all be limited to the first level of support VAH, April 30- 1.6871, below which the bears can also abut the VAH, April 28- 1.6854, and then the level of POC on the same day- 1.6842. The farthest goal is to test VAH April 29- 1.6830.