British Pound Technical Analysis

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British Pound Technical Analysis

The British Pound has bounced off its low against USD while its trapped in wide ranges against the EUR and CHF. How long will GBP be tied to its Continental Europe constituents？To get more news about gcm forex, you can visit wikifx.com official website.
GBP/USD TECHNICAL ANALYSIS

Starting off with GBP/USD, the late September low of 1.3412 was outside of the 2 standard deviation lower Bollinger Band, based on the 21-day simple moving average (SMA). Since it moved back inside the lower band, it has had a bullish move to a high of 1.3674. While this high was above the 21-day SMA, it has not had a close above the 21-day SMA and it may offer resistance.
　　Previous highs of 1.3751, 1.3913 and 1.3982 may also offer resistance. Additionally, the current level of the 200-day SMA at 1.3842 and a descending trend line at 1.3820 are potential resistance.
　　A Shooting Star candlestick formation on Friday has yet to manifest as a bearish reversal signal.
　　The low of 1.1410 was in March last year and GBP/USD then rallied to 1.4251 in June this year. Below the market, the 61.8% Fibonacci retracement is at 1.3166, a level of potential support. The recent low of 1.3412 is also a possible level of support.
Normally, when the 10-day SMA crosses below both the 55-day and 100-day SMAs, this might suggest bearish momentum. However, looking at the chart and the range bound nature of this currency pair, its possible that previous highs and lows might have more impact.
　　Support could be provided at the previous lows 0.84274 and 0.84503. On the topside, there is potential resistance at the previous high of .85270 and then higher up at 0.86583, 0.86697 and 0.86716.
GBP/CHF has also been caught in a range since May. The outer bounds of 1.24731 and 1.28567 are possible support and resistance level respectively.
　　The current range bound nature of GBP/CHF is highlighted by the price being very close to the middle of the 21-day SMA based Bolling Bands.
　　Resistance might be offered at the prvious highs of 1.26777, 1.27315 and 1.28195. On the downside, support could be provided at the previous low of 1.24731.