GBPUSD: Daily Chart vs. Weekly Chart

GBPUSD is trading in serpentine motion on weekly chart and gearing its pressure to close below 100 days moving average which stands at 1.6060. It has yet to complete W cycle of wave with having only two top right now. The trading zone of 1.6238 - 1.6067 has witnessed zigzag pattern in the duration of Feb-March 2011 but found no resistance or low resistance in breaching the same area in the month of June 11. Though pair is trying hard to accelerate itself above 1.6555 but gravity of bear magnetic power always pulls it down in range of 1.6100-1.6200. The affinity of zone is truly supported by 50 days as well as 100 days exp. MA. It is expected that in coming days also GBPUSD will continue its trading in same fashion until and unless it gives a weekly breakout below 1.5840 or above 1.6570. The volume is rising from last three weeks while price is declining at the counter. Stochastic (14) is about to form bearish crossover which can be a cause of concern for bulls.
On Daily chart GBPUSD just reversed its direction after meeting Bollinger lower band and double bottom area (1.6163-1.6199) and headed towards BB 20 MA on Friday. It has entered in lower band of BB after trading more than more than 14 days in upper band. It doesn?t mean that GBPUSD is bearish but it only means the bull force is decelerating slowly. Bull traders may eye for 1.6445 while Bear has to wait till it closes below 1.6105

Source: http://www.fxstreet.com/technical/analysis-reports/global-currency-market/2011-08-13.html

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