FX.co ★ GBP/USD technical analysis for February 7, 2013

DESCRIPTION:

Today, the pound still have a good and healthy bearish momentum, this is indicated by all the three Moving Averages still giving a "Death Cross" formation pattern. However since the 1.5775 level was breached by this currency three days ago, theoretically, the price was supposed to reach 1.5575 yesterday, but now it is still running at 1.5650. Bearish momentum for the pounds has slightly decreased.

Today the official Bank Rate/MPC Rate Statement will be released. Some fundamentalist forecast the rate will remain unchanged at 0.50%. We hope this news will be a booster for the bearish momentum for this currency today.

Recommendation:

Sell stop (pending order) at 1.5637.

Take profit 1 at 1.5623.

Take profit 2 at 1.5601 (optional).

Stop loss at 1.5659.

Alternative:

Buy stop (pending order) at 1.5683.

Take profit 1 at 1.5701.

Take profit 2 at 1.5730 (optional).

Stop loss at 1.5654.

Best regards,

Arief Makmur

Official Analyst of InstaForex Companies Group

InstaForex Companies Group

https://instaforex.com

Email : Arief.jakarta@indo.instaforex.com

Disclaimer:

Trading Forex (foreign exchange) on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.