GBP/USD intraday technical levels and trading recommendations for May 15, 2015

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Overview:

On March 2, a bearish breakdown of the lower limit of the previous daily channel occurred enhancing the bearish side of the market.

Persistence below the zone of 1.4950-1.5000 indicated a further bearish decline towards 1.4700.

Shortly after, the bearish trend was resumed towards the level of 1.4550 where a lower daily bottom was established.

Evident bullish recovery emerged at 1.4560 pushing the GBP/USD pair above the level of 1.4700. Since then, successive higher highs have been established.

As anticipated, the daily closure above 1.5060 (50% Fibonacci level) exposed the next resistance levels at 1.5400 and 1.5450 where extensive bearish pressure was previously applied.

This enhanced the bearish side of the market towards the levels of 1.5300, 1.5250, and 1.5100 where the most recent bullish swing was initiated on May 5.

Note that Intraday Support 1 (price level of 1.5400) is the most prominent support level to be watched for buy entries when the further bearish pullback occurs.

On the other hand, the current price zone of 1.5750-1.5800 is a critical resistance zone to be watched for signs of bearish reversal and a possible sell entry if enough bearish pressure is applied.

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USD/CAD intraday technical levels and trading recommendations for May 15, 2015

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Overview:

Since bulls pushed the price further above the upper limit of both depicted bullish channels and the 79.6% Fibonacci level, the market looked quite overbought. That is why the price failed to hold above 1.2650 - 1.2680 (previous highs) resulting in the formation of a Triple-top pattern.

Successive lower highs were established within the depicted consolidation zone enhancing the bearish side of the market.

Support levels around 1.2350 and 1.2300 (79.6% Fibonacci level) were broken after providing significant support for several weeks on the daily and weekly charts.

Daily fixation below 1.2300 cleared the way for the USD/CAD pair towards the levels of 1.2000 and 1.1940 (projection target of the recent range breakout and the depicted weekly uptrend).

That is why we expected these price levels to provide significant bullish rejection. However, bearish breakout should not be excluded this week as signs of successive bearish pressure have already originated on the daily chart (successive lower highs were expressed around the price levels of 1.2290 and 1.2150).

On the other hand, the price zone of 1.2330-1.2350 remains significant intraday resistance for further retesting. This zone is likely to offer a low-risk sell entry while re-testing.

Trading recommendations:

Breakdown of the recent low at 1.1940 invalidates the bullish scenario.

However, as previously suggested, risky traders could have taken a counter-trend buy entry anywhere around 1.1950. S/L should be set as daily closure below 1.1930. T/P is projected at 1.2100, 1.2270, and 1.2320.

On the other hand, conservative traders should wait for a bullish pullback towards the levels of 1.2300-1.2340 for a low-risk sell entry. T/P levels should be placed at 1.2220, 1.2100, and 1.1950 while S/L should be placed above 1.2250.

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Intraday technical levels and trading recommendations for GBP/USD for May 15, 2015

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Significant supply levels located around 1.5300 (weekly 38.2% Fibonacci level) and 1.5500 (weekly 50% Fibonacci level) have been providing a significant supply over the GBP/USD pair for few months.

Evident bullish recovery emerged from the area around 1.4550 where a significant bullish engulfing weekly candlestick was expressed.

As mentioned before, persistence above the levels of 1.5000-1.5080 exposed the weekly supply zone of 1.5500-1.5550 (roughly corresponding to weekly 50% Fibonacci level), where significant bearish pressure was previously applied on February 22.

This week, the market has already pushed above the weekly supply (1.5530) and 1.5720 (FE 100%). That is why the current weekly candle closure should be monitored to determine the next destination of the pair.

Note that persistence above the weekly supply at 1.5530 hinders the long-term bearish trend for sometime.

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Sideways movement with slight bearish tendency had been expressed on the daily chart until the bullish breakout took place above 1.4970-1.5000 (via a long-term bullish reversal pattern).

The price zone between 1.5000 and 1.5050 (daily 38.2% and 50% Fibonacci levels) failed to hold. Moreover, it constitutes a prominent demand level for the GBP/USD pair.

It offered a valid buy entry for retesting that took place last week. S/L can advance to 1.5500 to secure some profits now.

As already mentioned, daily closure above the weekly supply zone 1.5500-1.5530 exposed the next supply level located at 1.5720 (100% Fibonacci Expansion of the recent bullish swing).

The price zone of 1.5450-1.5500 constitutes a prominent demand zone to be watched for valid Intraday BUY entries if a bearish pullback occurs soon.

On the other hand, the next supply level to meet the pair is located near the level of 1.5990 (141.4% Fibonacci Expansion of the recent bullish swing) if the current daily persistence above 1.5720 (100% FE) is maintained.

Note that an Intraday SELL entry can be offered near 1.5990 if it got tested in the near future.

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

Intraday technical levels and trading recommendations for EUR/USD for May 15, 2015

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The market was pushed lower after breaking below the major demand levels around 1.2100 and 1.2000 where historical bottoms were previously established back in July 2012 and June 2010.

The EUR/USD pair lost almost 1,500 pips since the beginning of 2015. Moreover, EUR/USD bears have already pushed the market slightly below the monthly demand level at 1.0550 (established on January 1997).

The previous monthly closure had a negative impact on the EUR/USD pair. However, April's monthly candlestick came as a bullish engulfing candle as depicted on the chart.

In the long term, bearish breakdown of the monthly demand level at 1.0550 should not be excluded as the long-term breakout target is roughly projected towards the level of 0.9450.

In the meanwhile, further bearish decline can be hindered for a few weeks.On the other hand, bullish corrective movement towards 1.1500 and 1.1600 is highly probable now especially if the daily persistence above the level of 1.1250 is maintained for a few days.

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The obvious bearish breakout of the weekly demand level at 1.1100 allowed the market to fall dramatically shortly afterwards.

After such a long bearish rally (which started around the levels of 1.1300), bullish rejection was expressed at 1.0570 (monthly demand level).

A bullish continuation pattern with an ascending bottom was established around the level of 1.0650.

This applied a strong bullish pressure to the prominent supply levels at 1.1150 and 1.1240. Thus, bears failed to pause the ongoing bullish momentum of the EUR/USD pair.

As anticipated, daily persistence above the levels of 1.1250 and 1.1350 enhanced the bullish side of the market.

The nearest daily supply level comes to meet the EUR/USD pair around the level of 1.1500 if the currently expressed bullish momentum is maintained above 1.1370 (corresponding to the previous weekly high).

On the other hand, failure to close above 1.1370 indicates further sideways movement without significant bullish advancement.

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