FOREX GBP/USD 3rd MAY 2008

GBP Weekly and daily charts

Large triangle formation occuring with expectation that GBP will move lower in MAY towards the Quarterly lows.

This week we have seen prices swing back upwards and test the MAY 50% level, before selling off, with the expectation that prices will make a lower low next week.

GBP Daily and 5-day pattern

As illustrated above:- 3-day rejection pattern into lows


GBP 5-day pattern

Support as shown around the Risk levels on Monday, which will probalby push price back up into the 3-day rejection pattern.

Below Risk and it's a breakout confirming the move down into the 5-day lows.

Note: lower Weekly close followed by a lower Weekly open next week, therefore there is an expectation that a 2-day counter-trend move can occur, which will probably be around the Weekly lows :- ie Lower Daily close and then rising UP from a lower Daily open.