In using Techincal Analysis, even if you trade in short term market , you can not ignore a long term information. For example if you trade in daily market , its better for you to notice the weekly market Chart also. This will help you to make your Technical Analysis more accurate .
As seen in weekly chart , level 1.3…. ( around December 20008 ) claimed to be GBPS’s lowest level since August 2007. And start from Pebruary 2009 , we can see GBP begin its rebound and keep moving up continuously toward 1.6582 recently.
I found a Trend Line and FIBO 0.0 crossing point in 1.7332 level. In this level also I found two candle stick body are in a equal level ( point ( C ) ) in around September 2008. So, I conclude if 1.6582 is break , than GBP next target will be 1.7332. It is also can be assumed GBP trading range will be 1.6582 – 1.7332
In drawing trend line , I’m using point ( A ) as starting point where candle stick tail hit the below Bollinger , grab the line beyond point ( B ) where candle stick tail hit the medium Bollinger.
In drawing FIBO levels , I put FIBO 100 in a par level of point ( B ) and grab the line moving up until FIBO 0.0 crossed my Trend Line , and in parallel level with point ( C ) as my explanation above.
Happy Trading !!!
Himawan Wardhana
founder of HIMAWAN FOREX
