[m.youssif]

With 4 hours MACD crossed above signal line, a temporary low is in place at 1.5935 in GBP/USD and bias is turned neutral. Some consolidations could be seen first. But upside is expected to be limited by 1.6140 minor resistance and bring fall resumption. Prior break of 1.5976 support suggests that rise from 1.5343 has completed at 1.6400 already. Below 1.5935 will target a test on medium term trend line support (now at 1.5793). Sustained break there will indicate that whole rise form 1.4230 has finished too and will turn outlook bearish for 1.5343 support. On the upside, above 1.6140 will turn focus back to 1.6400 high instead.

In the bigger picture, price actions from 1.3503 (2009 low) are treated as consolidation to long term down trend from 2007 high of 2.1161. Rise from 1.4230 is treated as the third leg of such consolidation and with 1.5343 support intact, such rise could still continue for 1.7043 resistance. But after all, strong resistance should be seen between 1.7043 and 50% retracement of 2.1161 to 1.3503 at 1.7332 to limit upside. On the downside, break of 1.4230 support will be the first signal of down trend resumption and will turn focus to 1.3503 low for confirmation.

[m.youssif]

With 4 hours MACD crossed above signal line, a temporary low is in place at 1.5935 in GBP/USD and bias is turned neutral. Some consolidations could be seen first. But upside is expected to be limited by 1.6140 minor resistance and bring fall resumption. Prior break of 1.5976 support suggests that rise from 1.5343 has completed at 1.6400 already. Below 1.5935 will target a test on medium term trend line support (now at 1.5793). Sustained break there will indicate that whole rise form 1.4230 has finished too and will turn outlook bearish for 1.5343 support. On the upside, above 1.6140 will turn focus back to 1.6400 high instead.

In the bigger picture, price actions from 1.3503 (2009 low) are treated as consolidation to long term down trend from 2007 high of 2.1161. Rise from 1.4230 is treated as the third leg of such consolidation and with 1.5343 support intact, such rise could still continue for 1.7043 resistance. But after all, strong resistance should be seen between 1.7043 and 50% retracement of 2.1161 to 1.3503 at 1.7332 to limit upside. On the downside, break of 1.4230 support will be the first signal of down trend resumption and will turn focus to 1.3503 low for confirmation.