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Bounce or Break. This is The Question?

Mon, Jul 6 2009, 03:38 GMT
by Mohamed I El Shall

4XTechnicales.com



GBPUSD has to answer this question on the next coming hours. As it is approaching its important support level at 1.6200 while you read this article. We kept on mentioning this important price level many times on our daily and weekly review.

 

We recommend a long position from 1.6200 with a stop loss at 1.6050 and our target will be at 1.6565. For following reasons.

 

-          1.6200 is a very strong price level since it had supported the pair of currency and pushed it up several time last month.

-          Bullish divergence on OSMA.

-          The pair had signaled an overbought signs on stochastic indicator.

 

Illustrations are on below chart.


GBPUSD 060709 IMP Levels


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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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