GBP/USD Update (9/6/09)

Time: 11.50 p.m. (GMT +8)

Looks like the earlier bearish moves on Monday is just a test of the lower trendline support as seen in the below attachment. During the test of the LTL, there is also a bullish divergence in the 1h time frame and looks it has been in play since the price touched the LTL.

GBP/USD 4H Chart

The pir also has broken the 2 resistance level during the bullish moves and currently looking for a next resistance to test which is likely to be the 1.6427 which is also the Fibonacci Retracement level since the drop from 2.1160. Another resistance can be consider would be the 61.8% Fibo Retracement level from last week high's which is 1.6661 to this week low's at 1.5801.

GBP/USD 1H Chart

Curently the pair is bullish as it already trading above its 100EMA in the 1H time frame. However, if we look in the below chart, there is a bearish divergence developing in the 1H chart MACD. There is no clear sign yet that the divergence is going or in play, but it will likely when the pair approching the next resistance in the range of 1.6332 which is the Fibo retracement level since the drop from 1.6662 to 1.5801. We need further confirmation before we can assume that the current bullish run is just a consolidation from previous drop or a continuation from previous rise.

GBP/USD MACD Bearish Divergence (1H Chart)