Trade analysis

Trade Analysis for 31 Jan 08

Currency Pair: GBPUSD

Analysis: GBPUSD started falling on the 9^th of November from 2.1143 to a low of 1.9754. Currently prices have retraced from its low of 1.9754 to 2.0021 but prices did not manage to close there for the day. Prices closed at 1.9930 instead, forming a bearish doji. The high of 2.0021 was also near the 61.8 fib retracement and because it got rejected, I believe prices will start dropping with momentum on the 2^nd of January.

S/R Areas: 2.0021, 1.9892, 1.9754

Direction: Down

As you can see, the last candle there is the doji and prices are below the 89 SMA.

Currency Pair: EURJPY

Analysis: Although prices seems like it has been rising on the daily, the pair has been unable to break its previous highs for at least 3 times. The pair faces strong resistance on its upwards ride and seems poised to fall if it does not manage to break through. Moreover, a bearish hammer candlestick was formed and the MACD has given a red bar for the day. On the weekly, prices have been moving in a triangle formation and a break-out will occur soon. Current direction is unclear and it would be better to wait for the break-out and react instead. However, a move lower seems more probable and I will react if pric

es start heading downwards.

S/R Areas: 1^st Resistance: 167.63, 2^nd Resistance: 168.93

1^st Support: 165, 2^nd Support, 161.73

Direction: Down