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GBPUSD Short Term Reversal

Tue, Oct 28 2008, 09:57 GMT
by Forex Hound Analysis Team

ForexHound.com


GBP USD has bounced of the year's low formed last Friday at 1.5265; after a failed attempt to break through we witnessed a slow move upwards that seems to accelerate. The pair broke above trend line marking the slope of the bearish move and has transformed that from resistance into support. price action on the 4 hours and smaller time frames also comes to help the short term bias change as the pair formed several exhaustion candles inside bars and doji's before jumping above 1.57. First significant resistance is the 1.6000 where we expect bearish traders to start building new short positions.


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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