Following yesterday’s comment, Pound extended the fall after being unable to overcome the Fibo level at 1.6840, and is testing right now the key 1.6520 support level. I see the 200 EMA in the 4 hours charts around 1.6490, so I would love to see some technical confirmation under 1.6480 before calling for further falls. Next supports come at 1.6440 and 1.6385. Resistances from here, lie at 1.6550, 1.6600 and  1.6640/60 strong zone.

Here is the weekly GBP/USD chart. I’m always asked about why i watch Fibonacci retracements in such big charts, and the fact is that I just pay attention to that levels, when we are close to them, like in this case, and wait for the weekly close, to see if i can define next week upcoming trend. Anyway, pair has failed above the 50% of the rally back in August, and despite a spike above it, seems we are going to fail again (we need the week close to be sure of that). As far from the Fibo we close the week, less chances will have pound to regain upside strength; even, seems we are making a double roof also here, something far from being complete as neck line lies at the 1.5730/60 strong area. Anyway, i will be following it with patient. Weekly close clearly above 1.6840, will likely signal further rises with 1.7000 as a main and first target.

Turning to smaller time frames, pair is around 1.6640/60 that probe strong in the past, yet indicators point for further falls ahead. next support comes at the 1.6585/1.6600 area, while under this last, 1.6520 will be next and key support to consider: daily close under that level, will signal further falls for next week. Being a bit oversold in smaller time frames, an upside correction will find resistances at 1.6690/1.6700, followed by strong 1.6740 that should cap the upside.

Here is my choice for today, enjoy!

http://www.fxstreet.com/technical/forex-strategy/the-best-pair-to-trade-now/2009-11-16.html

Slow session waiting for U.S. data, 4 hours charts show GBP/USD needs some downside correction at this point, despite the clear bullish trend. Under 1.6650 area, pair should approach to next support, 1.6610. there we couls see some definitions: a rebound will mean a healthy upside trend, while a quick break lower, will likely send the pair to the 1.6550 zone. Resistances today lie at 1.6700 1.6740 and 1.6790.

Just above 1.6550 support area, pair has a strong congestion zone between 1.6480/1.6510, that has been halting downside rallies, and we also have the 20 SMA in the daily chart there, so seems it won’t be an easy level to break; yet a clear confirmation under it, should send the pair to the 1.6430 area, next key support zone to consider. Resistances from current price, are at 1.6580, 1.6620 and the 1.6660 zone.

Gbp/Usd is fighting the 20  SMA in the 4 hours charts, that usually acts as strong dynamic support/resistance level. In this case, is giving hte pair support, while CCI has rebounded in the 0.00 line, and turned to the upside, suggesting support zone at 1.6640/60 area won’t be easy to break. We need to see a clear acceleration there, to see the pair reaching the 1.6600 area, next support for today, followed by 1.6550 area. To the upside, resistances come at 1.6700, 1.6735 and 1.6780.

Here is the link to my choice for today. Enjoy!

http://www.fxstreet.com/technical/forex-strategy/the-best-pair-to-trade-now/2009-11-02.html

Gbp/Usd is also forming a continuation figure a triangle in the 4 hours charts. Holding above strong 1.6520 area, indicators point for a downside correction, that should over come that zone to start. Next support lie at 1.6470 and 1.6440, while resistances from current price are located at 1.6550 and 1.6600.

Gbp continues pushing higher, close to yesterday’s high of 1.6453, also 23.6% of last Fibonacci rally. Above that level, pair likely approach to 1.6490 area ahead of key 1.6520. This level has been quite strong the past months, so pair should retreat from there. If broken pound will gain more upside momentum, and likely approach to the 1.6550/60 area. To the downside, first support comes at 1.6410, followed by 1.6350 area, and 1.6320. The pair has quite a messy congestion zone between 1.6280/1.6320, so we need to see it clearly under that levels, to call for a downtrend continuation.

Gbp has been quite positive since early opening, and continues to the upside, after October Retail sales volume increase in October to 8 from a previous reading of 3. Yet from a technical point of view, 4 hours charts show pair is being capped by 20 SMA still with a bearish slope, and Pound has no enough strength yet to break to the upside. indicators are quite bullish so, if the pair manages to break the mentioned MA, likely to accelerate to the upside with immediate resistances at 1.6450, 23.6% retracement of the last daily up leg, followed by strong 1.6520 level. Supports from current level come at 1.6410, 1.6365 and 1.6320 zone.