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24 Apr 2013
Forex: GBP/USD still forming possible “bear flag” on daily chart
FXstreet.com (Barcelona) - The GBP/USD remains in a narrow range during Asia trade, currently flat on the session at 1.5236. Economic data out of the UK is light in the coming session, with Mortgage Approvals due out at 8:30 GMT. The US session will also be fairly quiet with Durable Goods do out at 12:30GMT.
The recent correction higher on the GBP/USD daily can still be viewed as a bear flag, with a close below the lower trend line (1.5200) needed to confirm the pattern. Only a close above the upper boundary of the flag pattern (1.5500) would negate the pattern. The measured move from the bear flag has targets all the way down near 1.4370. Also of note, the RSI (14) remains in the bearish zone after failing at the 60 level numerous times in early April. The pair might be in the need of a catalyst in order to confirm the pattern which could be the GDP data due out of the UK later this week.
The recent correction higher on the GBP/USD daily can still be viewed as a bear flag, with a close below the lower trend line (1.5200) needed to confirm the pattern. Only a close above the upper boundary of the flag pattern (1.5500) would negate the pattern. The measured move from the bear flag has targets all the way down near 1.4370. Also of note, the RSI (14) remains in the bearish zone after failing at the 60 level numerous times in early April. The pair might be in the need of a catalyst in order to confirm the pattern which could be the GDP data due out of the UK later this week.