News Column

GBPUSD Scalps Selling Rallies into May Range Lows- Key Support 1.6750

May 27, 2014

Michael Boutros

Talking Points



  • GBPUSD testing November channel support
  • Technical reversal pattern shifts near-term focus
  • Major event risk from US this week



    GBPUSD Daily Chart

    GBPUSD Scalps Selling Rallies into May Range Lows- Key Support 1.6750



    Technical Outlook



  • GBPUSD breaks below weekly opening range on outside reversal day- bearish
  • Key support objective 1.6726/55, 1.6652/63- bullish invalidation
  • Interim resistance 1.69, 1.6984 (bearish invalidation), 1.7045/65
  • Daily RSI break sub-50 (bearish)
  • Event Risk Ahead: US 1Q GDP





    GBPUSD Scalp Chart

    GBPUSD Scalps Selling Rallies into May Range Lows- Key Support 1.6750



    Notes: The GBPUSD is back in focus with today's outside reversal bar breaking below the weekly opening range low at 1.6826. This level is defined by the confluence of longer-term Fibs and the May opening range low and shifted our scalp bias to the downside earlier this month. As such, we're looking for a low heading into the close of May trade with a break below key support at 1.6726/55 suggesting a more significant high may have been put in place this month.





    * It's extremely important to give added consideration regarding the timing of intra-day scalps with the opening ranges on a session & hourly basis offering further clarity on intra-day biases.



    Key Threshold Grid



    Entry/Exit Targets

    Timeframe

    Level

    Technical Relevance

    Resistance Target 1

    30min

    1.6803

    61.8% Retracement

    Resistance Target 2

    Daily / 30min

    1.6822/25

    Weekly ORL / 50% Retrace / 61.8% Ext

    Resistance Target 3

    30min

    1.6848

    38.2% Retracement

    Bearish Invalidation

    Daily / 30min

    1.6875/80

    Weekly ORH / 23.6% Retrace

    Break Target 1

    Daily / 30min

    1.6894 - 1.6902

    61.8% Retracement / May 12th High

    Break Target 2

    30min

    1.6939

    78.6% Retracement

    Break Target 3

    30min

    1.6970

    Soft Resistance / Pivot

    Break Target 4

    Daily / 30min

    1.6985/95

    May/2014 High / 2009 Close High









    Support Target 1

    30min

    1.6771

    78.6% Retracement

    Support Target 2

    Daily / 30min

    1.6754/56

    61.8% Extension(s)

    Bullish Invalidation

    Daily / 30min

    1.6726/37

    100% Ext / 50% Retracement

    Break Target 1

    30min

    1.6700

    Soft Support / Big Figure

    Break Target 2

    Daily / 30min

    1.6653/64

    100DMA / 100% Ext / 61.8% Retrace

    Break Target 3

    30min

    ~1.6610

    ~ TL Support

    Break Target 4

    Daily / 30min

    1.6574

    78.6% Retrace / April Close Low









    Average True Range

    Daily (20)

    71

    Profit Targets 17-19pips









    *ORH: Opening Range High

    *ORL: Opening Range Low



    Other Setups in Play:



  • GBPNZD Scalps Target May Opening Range Break- Bullish Above 1.96
  • AUDUSD Scalps Target Channel Break- Bearish Sub 9300
  • GBPAUD Scalps Target Key Resistance- Bullish Above 1.7920
  • USDOLLAR, Gold Setups Target Key Resistance- Breakouts Pending
  • GBPUSD Risks Major Support Break Ahead of Key UK/US Data- 1.6820 Key
  • NZDJPY Monthly Opening Range Trade- Bearish Sub 89.50
  • EURAUD Scalp Setup Favors Selling Rallies Sub-1.5030




















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    Source: DailyFx


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