GBP/USD (daily chart as of September 15, 2015) broke down below the 100-day EMA (bold blue moving average line on chart) on August 26 with a long bearish candlestick. This 100-day EMA has been serving as major support/resistance line since late February (red arrows from 1 to 6 on chart). On August 27, the pair also broke down below the medium-term uptrend line connecting the lows since early May (bold red trend line on chart). Note that a potential head-and-shoulders pattern has emerged, with the May 14 high and August 25 high as the shoulders, the June 18 high as the head (gray shape on chart), and the medium-term uptrend line or the 100-day EMA as the neckline. Current price is trading below the 100-day EMA. If the 100-day EMA remains as resistance, the pair could decline further to test 1.5170 level again, and potentially 1.4975 area. The potential projected target of the head-and-shoulders pattern is around 1.4880 level (if 100-day EMA as the neckline) or 1. 4790 level (if medium-term uptrend as the neckline). If price breaks out above the 100-day EMA and the medium-term uptrend line, it would invalidate the potential head-and-shoulders pattern. The pair could trade higher to test 1.5680, and then potentially 1.5815 level again. Support levels: S1: 1.5170 (multiple lows) S2: 1.4975 (multiple highs) S3: 1.4790/4880 (projected target of potential head-and-shoulders pattern) Resistance levels: R1: 100-day EMA or medium-term uptrend R2: 1.5680 (multiple highs) R3: 1.5815 (August 25 high) Post by Diane Ming, Contributing Author of InvestingTeacher.com. She is an Affiliate Member of the Market Technicians Association (MTA). Upcoming event risks: Wednesday September 16, 4:30am – GBP Average Earnings Index 3m/y Wednesday September 16, 8:30am – CAD Manufacturing Sales m/m Wednesday September 16, 8:30am – USD Core CPI m/m Wednesday September 16, 6:45pm – NZD GDP q/q Thursday September 17, 2:35am – JPY BOJ Gov Kuroda Speaks Thursday September 17, 3:30am – CHF Libor Rate Thursday September 17, 4:30am – GBP Retail Sales m/m Thursday September 17, 8:30am – USD Building Permits & Unemployment Claims Thursday September 17, 10:00am – USD Philly Fed Manufacturing Index Thursday September 17, 2:00pm – USD FOMC Statement & Federal Funds Rate Thursday September 17, 2:30pm – USD FOMC Press Conference Thursday September 17, 7:30pm – AUD RBA Gov Stevens Speaks Friday September 18, 8:30am – CAD Core CPI m/m Diane Ming is an Affiliate Member of the Market Technicians Association (MTA). She is a Technical Analysis Contributing Author of InvestingTeacher.com. In our latest podcast, we  prepare you for the Fed decision from all directions Follow us on Stitcher. Guest Guest View All Post By Guest Forex News Today: Daily Trading News share Read Next AUD/USD: 4-Wave Corrective Squeeze; Where To Sell? – Goldman Yohay Elam 7 years GBP/USD (daily chart as of September 15, 2015) broke down below the 100-day EMA (bold blue moving average line on chart) on August 26 with a long bearish candlestick. This 100-day EMA has been serving as major support/resistance line since late February (red arrows from 1 to 6 on chart). On August 27, the pair also broke down below the medium-term uptrend line connecting the lows since early May (bold red trend line on chart). Note that a potential head-and-shoulders pattern has emerged, with the May 14 high and August 25 high as the shoulders, the June 18 high as… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
