GBPUSD Weekly/Daily/4hr

The (GBPUSD) is beginning to see some profittaking after the strong bounce off the fresh record low Monday.  Regardless of the GBPUSD clawing back above downchannel support (on the weekly chart) after plunging below it this week, it remains at moderate risk of gravitating towards parity in October.  The weekly Hammer currently forming though suggests a roughly equal chance that Monday’s low may have marked a major bottom.  Before bulls get excited, they’ll want to see a daily close above the daily chart downchannel resistance and the psychologically key 1.10 whole figure level.  Watch for volatility following Friday’s US core PCE price index release.  The escalation in the Ukraine-Russia conflict deserves close monitoring.  The still downsloping weekly MACD is weighing on the bottomish weekly RSI and Stochastics.  I am looking to go long in the green zone (of the daily chart), targeting the red zone for Wednesday.  The amber/yellow zone is where I might place a stop if I was a swing trader (although in my personal account with which I seldom hold overnight I sometimes set my stops tighter).  Click here for analysis on GBPAUD, ARABICA COFFEE

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