GBP/USD intraday technical levels and trading recommendations for December 26, 2014

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Overview:


The GBP/USD pair has been moving downward respecting the depicted bearish channel since mid-September when the ongoing channel was initiated.


The price zone of 1.5890-1.5870 constituted a transient daily support that paused the bearish movement for a few days. However, bears quickly managed to push lower.


Failure of the market to defend the price zone of 1.5890-1.5900 allowed bears to push towards the support level located around 1.5550 where recent congestion zone was established above.


Recently, the market failed to express bullish breakout above the price level of 1.5760 (upper limit of the daily bearish channel). Instead, extensive bearish breakout was applied against the price levels of 1.5540-1.5560 (this breakdown was successfully executed on Tuesday).


Note that DAILY fixation below the recent bottoms established around 1.5540-1.5560 renders the current consolidation range as a bearish flag pattern with potential projected target at 1.5310 (similar to what happened back in October 2014).


Key level for the current week's movement is 1.5600. Persistence below it signals more bearish dominance in the market and vice versa.


In other words, another daily closure above the zone of 1.5550-1.5600 invalidates the ongoing bearish range breakout pattern probably extending the bullish targets towards 1.5700 levels again.


The material has been provided by InstaForex Company - www.instaforex.com

USD/CAD intraday technical levels and trading recommendations for December 26, 2014

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Overview:


Three months ago, the price levels around 1.0620 (the lower limit of the depicted chart) initiated the current strong uptrend within the depicted daily channel.


During the past few weeks, the USD/CAD pair established a temporary consolidation zone between 1.1430-1.1330 and recently around 1.1480. Bullish breakout above these zones allowed bulls to reach new highs around 1.1540 and 1.1670.


The price zone of 1.1430-1.1460 remains the nearest SUPPORT zone for the current prices. It corresponds with the lower limit of the daily channel as well as the previous high that goes back to November.


The price level of 1.1650 (which was our final bullish target) roughly corresponded with the upper limit of the bullish channel as well as 61.8% Fibonacci level.


According to the chart, the USD/CAD consolidation pattern has tightened. A Wedge/Flag pattern is being expressed on the H4 chart.


This is because of the positive United States GDP data that emerged. It applied further demand on the dollar currency. However, weak oil recovery still keeps the movement contained.


Trading recommendations:


Risky traders should look for SHORT positions around the price level of 1.1650. SL should be located above 1.1700.


Conservative traders should be looking for a pull-back towards 1.1440 for a LONG position. SL should be set as daily closure below 1.1400.


The material has been provided by InstaForex Company - www.instaforex.com

Intraday technical levels and trading recommendations on GBP/USD for December 26, 2014

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Two weeks ago, the GBP/USD pair found intraday DEMAND around 1.5550 where many lows were previously established back in November.


The DAILY outlook looked quite bullish while bulls were defending the lower limit of the consolidation range around 1.5550 for many successive weeks. However, a bearish breakout was expressed on Tuesday.


The bears have already reached down to 1.5485. Daily closure confirmed the bearish breakout.


Now we are seeing a bearish flag pattern similar to what happened back in October provided that the market does not reach above 1.5550-1.5570 (recent SUPPLY zone).


Projection target would be located around the price level of 1.5350.


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A consolidation movement ranging between the price levels of 1.5770 and 1.5550 represented the state of indecision on the market after such a long bearish rally that started off 1.7100 and 1.6500.


As anticipated, the bearish breakout below 1.5550 directly exposed lower targets. Potential projection target for this range breakout pattern should be located around 1.5330-1.5350.


However, activity in the market remains limited as holiday pushes into a tight trading range, no real directional movement should be expected.


Note that H4 fixation above 1.5570 temporarily pauses the current bearish trend exposing higher SUPPLY levels (initially 1.5650) to be retested first.


Conservative traders should wait for a bullish pullback towards higher SUPPLY levels for lower-risk SHORT entries.


The material has been provided by InstaForex Company - www.instaforex.com

Intraday technical levels and trading recommendations on EUR/USD for December 26, 2014

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Recently, the daily fixation below 1.2360 (the lower limit of the depicted broken congestion zone) extended the bearish targets towards the price level of 1.2250.


The EUR/USD pair continued to move lower after breaking below major DEMAND LEVEL at 1.2250 rendering the price level of 1.2100 as the next targetted SUPPORT where the lower limit of the current movement channel is located.


Fundamentally, the EURO sentiment will probably remain negative upon news that the ECB would announce QE in the first January policy meetings.


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Activity in the market remains limited as holiday pushes into a tight trading range, no real directional movement should be expected .


However, for risky traders, the price level of 1.2150 remains a significant Fibonacci expansion level. Intraday DEMAND will probably be present at retesting.


Please also note that obvious H4 break below 1.2150 theoretically exposes the full-range breakout projection target around 1.2030.


Trade Recommendations :


As anticipated, risky traders could have benefited from the bearish breakout below 1.2250. This breakout exposes potential projection target roughly located around 1.2030.


Conservative traders should be looking for SHORT positions. Best low-risk entries may be taken around 1.2250-1.2260 (the latest broken DEMAND ZONE).


The material has been provided by InstaForex Company - www.instaforex.com