GBP/USD - Bear Channel Warns of Losses Ahead

By: MIG Bank | Mon, Jan 23, 2012
Print Email

GBP/USD remains confined within a falling daily/hourly channel. A further swing lower is favoured from this region to test long-term trendline support, currently at 1.5170. We now seek a lower high for the resumption of weakness towards this target zone.

The channeling formation that we see in the daily timeframe is suggestive of a degree of exhaustion. We are also wary of the signal given by negative rates on short dated German sovereign debt (6 months and under). We would thus expect strong support near 1.5150, should this level be met, due to an expectation that EUR/GBP may be pressured to the downside, as Sterling may be favoured as a relative safe haven.

With this in mind, it is also noted that in the daily timeframe there is a head and shoulders pattern, with a neckline passing through 1.5297/1.5235. It is anticipated that if a break under this neck-line can be achieved, that it will lack momentum.

Daily Technical Report



MIG Bank

Author: MIG Bank

MIG Bank

MIG BANK, formerly known as MIG INVESTMENTS, was established in Neuchatel, Switzerland as an online Forex broker and in 2009 became the world's 1st Forex broker to obtain a Swiss banking license. Since its foundation in 2003, MIG BANK specializes in online Forex trading and remains a leading Forex broker for clients in more than 120 countries.

No information published constitutes an offer or recommendation, to buy or sell any investment instrument, to any transactions, or to conclude any legal act of any kind whatsoever.

The information published and is provided by MIG BANK for personal use and for purposes only and are to change without notice. MIG BANK makes no representations (either expressed or implied) that the information and opinions expressed are accurate, complete or up to date. In particular, nothing contained constitutes financial, legal, tax or other advice, nor should any investment or any other decisions be made solely based on the content. You should obtain advice from a qualified expert before making any investment decision.

All opinion is based upon sources that MIG BANK believes to be reliable but they have no guarantees that this is the case. Therefore, whilst every effort is made to ensure that the content is accurate and complete, MIG BANK makes no such claim.

Limitation of liability
MIG BANK disclaims, without limitation, all liability for any loss or damage of any kind, including any direct, indirect or consequential damages.

Material Interests
MIG BANK and/or its board of directors, executive management and employees may have or have had interests or positions on, relevant securities.

All material produced is copyright to MIG BANK and may not be copied, e-mailed, faxed or distributed without the express permission of MIG BANK

All Images, XHTML Renderings, and Source Code Copyright ©