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GBPUSD Channel Breakout

Fri, Oct 3 2008, 08:47 GMT
by Forex Hound Analysis Team

ForexHound.com


GBPUSD has pierced through the bearish channel we pointed out yesterday and if this scenario is to come to fruition the pair is starting a new swing movement, first potential target is the 1.8000 area where we have the 38.2 Fibonacci Retracement of the last leg down and a previously tested support and resistance level. Opening a new position will depend on how aggressive each trader is, looking now on the smaller time frames to spot for price action patterns that can signal a bullish movement or to wait until this swing is fully developed and enter on the retracement.

GBP USD


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Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

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