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GBPUSD--Tuesday, October 13, 2009

A Fibonacci pattern seems to be taking shape in the GBPUSD bear move. Taking the low near the beginning of September and the high on September 11 as the alpha-beta base for a downward impulsive move, the initial 1.618 extended target would be approximately 1.5725. Below that would be the 2.618 extended target around 1.5095.

Daily chart:
091013-0954-gbpday.gif

Notice how, once the initial impulsive thrust was made below the alpha level towards the 1.618 initial target, the market oscillated for days around the 1.272 Fibonacci level, failing twice to rally above the alpha level and then today bounced off the 1.618 level.

Seen in more detail on a 4 hour chart:
091013-0955-gbp4hr.gif


Posted by Pure Guesswork on October 13, 2009 10:13 AM |

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