As seems in my chart , GBP this week will entering its sideways trade while continuing its moving up trend .
Resistances lie around 1.6525 ( FIBO 23.6 ) – 1.6582. A clear break of 1.6375 ( FIBO 61.8 ) would be bearish.
I placed FIBO 100 in level 1.6218 where two Moving Average trends ( red and blue line ) are crossing each other and also cross with Support level 1.6218 . Grab the trend moving up ,and placed FIBO 0.0 in a par of upper Bollinger ( point C in my chart ).
FIBO 161.0 are placed in level 1.5985 in a par of reversal level ( point A in my chart ) . And that makes 1.5985 become a Strong Support level. If this 1.5985 is break , then the bullish structure will change into a deep bearish market.
I’m using reversal level 1.5985 ( point A in my chart ) as starting point to draw my below Trend Line ( in red color ) , grab the line crossing Support level 1.6218
( FIBO 100.0 ) with ending point hit the FIBO 61.8 level 1.6375.
For drawing upper Trend Line , I’m using starting point where Middle Bollinger touch the top of Candle Stick tail ( point B in my chart )
Between this Trend Lines , I conclude Trading Range will be in area level 1.6375 ( point D in my chart ) – 1.6582 ( point C in my chart )
Trading Range : 1.6375 – 1.6582
Support : 1.6375 , 1.6218
Resistance : 1.6582 , 1.6675
Trend : Sideways
Target : 1.6582 , 1.6720
Click HERE to see my Chart
Happy Trading !!! July 27, 2009
Himawan Wardhana
founder of HIMAWAN FOREX
