DaytradingBias.com Forex Commentaries

GBP/USD Week of Jan 3rd to Jan 7th Outlook

, 01-02-2011 at 05:24 PM (589 Views)

[B]Recap of Last Week[/B]

Test of previous month low early in the week and failed to hold, yet defended the prior week low, leading to a bounce taking out the week high. The sharp pullback right after no longer matters because a 1-2-3 buy was staged for a take off towards our target green zone.

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[B]Next Week Outlook[/B]

First week of the year is very important as I stated in STOPD. It will shape how January will look like and subsequently affects how the year will look like in terms of volatility and potential target zones for the year.

The 1-2-3 buy from last week points to a run towards 1.58 area (green zone) where last week mid (yellow zone) should serve as support. If yellow zone fails to hold the pair up, the 1st downside target is last week low (red zone) and the pair will likely slide towards 1.520 - 1.525 area before it can find any significant support.

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