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The best pair to trade now

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GBP/USD: Continuation formation

Wed, Nov 4 2009, 12:12 GMT
by Valeria Bednarik

FXstreet.com Independent Analyst Team



Pair has reached the 1.6540 area in extreme overbought conditions in the hourly chart, and now corrects to the downside, consolidating above 1.6500. Under 1.6480 a deeper corrective movement will likely send the pair close to 1.6420 area, while if the zone holds, a renewed upside run above current high, will quickly send the pair to test the 1.6600 area.

4 hours charts are showing a clear continuation figure, a symmetric triangle, while indicators had enough momentum to extend the rally. Watch for a break and a pullback to the broken line, before taking a position.

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Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

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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