Downside support tagged

The Pound Dollar has been in a downtrend and our post back in April mentioned the pair could see 1.94 zone. Here is that forex analysis.

We have hit the support level 4 times so it seems to be quite good but if we breach this area we could see even further weakness. A confluence of events involving MACD convergence, candle reversal and the figure plus obviously the support is a good long opportunity.

A couple of factors to be aware of relating to the above. The trend is down and Bernanke is speaking today. A long position at this stage is a big risk as it is against the trend but the stop itself contains a smaller risk.



Chart courtesy of Advanced GET. Data provided by eSignal.

Good trading.

Forex Analysts
Javid Shaik & Anne Chapman