Forex Marketz Daily Forex News – Fully Markets Update
The GBP/USD Forex pair moved higher as expected following a bullish setup on the daily chart. Then an Evening Star candlestick pattern formed and the Sterling moved lower. Please refer to the below daily MT 4 chart.
Technical Analysis
Today’s technical analysis is noting the bearish evening star with the subsequent move lower through support levels. Now the GBP/USD is trading near the technical support of 1.5648. A daily close below this level will challenge the technical support at 1.5465. The alternative analysis, should the GBP/USD move back higher, notes near term technical resistance at a former support. This resistance level is at 1.5795. A move above level challenges 1.5940. A daily close above this technical resistance challenges the technical resistance at 1.6125.
Trade Strategy
Let’s look at today’s trade strategy. Things are bit complicated today as we have the Eurogroup Emergency Greece Meeting (Lagarde, Draghi, Juncker, Dijesselbloem will all be in attendance). This makes the chance for volatility high across the board for the euro as well as the Sterling. The meeting is scheduled for 1100 GMT. As far as the technical analysis is concerned, the GBP/USD is trading too close to a technical support level to warrant a short GBP trade at this time. Timing is off from a risk to reward perspective. There are no clearly defined bullish reversal patterns as well. This means taking a long GBP (short USD) trade is a bit premature. For now, I am opting to stand aside and monitor my charts for a better trade opportunity to come along. The pending Eurogroup meeting also makes me a bit nervous. Taking any trades in the Forex markets relating to anything euro or GBP is a bit risky.