The H4 candle is closing in about 14 minutes, so i guess that is why the bulls are having such a fuss about it, they will attempt to keep the close over .9480 to try and show superiority. They will try to make Higher Highs and Higher Lows.
The bears need to make sure that doesn't happen and to keep the close on H4 below .9480. They will try to make Lower Highs and Lower Lows.
Updated the trend lines a tad on the attached chart.
The price correction reached 25% and bounced off for now.
It will need to break the short term trend line shown in Red to continue the decline.
Targets on the downside: .9457 > .9454 > .9312 > .9260
Sterling Tumbles Further, Euro Still in Range
Sterling continues to weaken across the board today with GBP/USD breaking last week's low of 1.9480 and EUR/GBP breaking through 0.6670 resistance. Sterling's weakness was triggered by BoE's on-hold decision yesterday and further fueled by worse than expected trade deficit which widened to 7.142b from 7.9b. The report highlighted that UK's exporters are struggling with the high exchange rate of Sterling as exports fell 1.2%. Euro weakens mildly against dollar today but is basically still kept in range. Meanwhile the Japanese yen continues to edge lower as G7 meeting starts today and speculation on yen will be mentioned in the communique fades.
Canadian dollar is boosted higher today after stronger than expected employment report which started the year by adding 89k jobs in Jan, much higher than expectation of 13.5k.
Cable's decline from 1.9731 continues today by breaking through 1.9480 low, reaching as low as 1.9475 so far. As discussed before, break of rising trend line support (1.8517 to 1.8834, now at 1.9563) suggest that fall from 1.9913 has already resumed. Hence, at this point, further decline is expected to be seen towards 1.9237/61 cluster support (23.6% retracement of 1.7047 to 1.9913 at 1.9237) as long as cable stays below 1.9542 support turned resistance.
Touching of 1.9542 will turn intraday outlook consolidative first.
In the bigger picture, bearish divergence conditions are being displayed in weekly RSI, daily MACD and RSI. Sustained break of the mentioned trend line support will confirm that whole rise from 1.8517.
Decisive break of 1.9237/61 cluster support will add much weight to the case that whole medium term up trend from 1.7047 has already completed earlier than we thought, before reaching 2.0106 cluster resistance (1992 high, 100% projection of 17047 to 1.9024 from 1.8090 at 2.0067). Much deeper decline should be seen towards next cluster support at 1.8834 (38.2% retracement of 1.7047 to 1.9913 at 1.8818) first.
However, a strong rebound from or above 1.9237/61 will indicate that cable might made another high before finally topping out on the above mentioned divergence conditions.
Hope you're all doing well and enjoying the weekend, feet kicked up with a beverage in hand, indulging the modest delight of environmental silence far...far away from the busy and exhausting every day office chores and responsibilities.
I love weekends, i don't know why. I just love relaxing, lazying about... doing practically nothing, i feel like a little kid who told a white lie and managed to slip by and evade any and all responsibility in the world, entirely self satisfied in himself and with no sense or regret or conciousness... just floating away on a fluffy pinky-white cloud of euphoria, saturated in utter lazyness
I love laying on my couch in a pair of shorts, fingers clinched behing my head, with the courtains retracted, stretching like a cat and once in a while giving out a squeecky sound in turn with a vague curiosity of the location of its origin, just soaking up the warmth of the sun.
I don't know why im writing this, just thought i should.
I just wanna say, they life can be very hard, its like a big grinder and everyone that goes through it, gets chipped during the journey, sometimes loosing more of themselves than they have wanted to or imagined having needed to sacrifice to get to the other end and reach the exit.
Individuality is one of the most difficult things to retain nowadays. The mass of interactivity encountered on a daily basis with so many vividly different things and people, makes it increasingly problematic for us to retain the naturaly unadulterated colours of our presonality and self, in tact and whole.
I just want to say, know who you are. Spend more time understanding yourself so you can appreciate what you really are, because life is short.
Choose your friends carefully, Don't suck up to anyone.
Socialize with people who want to have you there, not just who don't mind.
Befriend only those who you consider no less than yourselves.
Don't be ashamed to stand alone. People will aknowledge and appreciate the respect and trust you have towards your own ability, self and existence.
Find someone to love and never let them go.
Life is like the FX, i'ts simple, don't complicate it or you woun't ever see the benefit.
Started with $USD 250 when i was 18 - blew it all (1 month into Forex)
Told myself i wouldn't trade live again, till i started profiting properly.
Now that i look back it's foolish that i wud have even thought about trading back then with that 250, knowing now that i hardly knew anything then about trading, funny as it seems, i made good money in a lot of my trades, before actualy loosing the account. It was all luck though and that doesn't count in this game. I had never heard the term "money management" then. Nor, fibonnaci, nor EMAs, nor trendlines, nor anything, in fact i have no idea how i even traded.
After nearly 2 years from then i took a bank loan for 5k.
Haha. I had some wild notions about getting rich on forex myself. But at least I had the good sense to not put any money in until I had educated myself to some degree and practiced for a few months on a demo account.
I plan to start off with 500 dollars and follow a very conservative track (and if I follow the trading system you outlined in this thread). Would you say thats a reasonable start? I ask this since the tutorial on this site repeatedly tells you NOT to start with anything below a 1000. Has me really double minded.
I can't write much now, but i want you to take a look at the charts. (attached too)
I will update later.
GBP/USD - 1
Cable's fall from 1.9731 was contained at 1.9457 and continues to recover today. Break of 1.9542 support turned resistance indicate an intraday low is formed and further consolidation will continue, but upside is expected to be limited by 1.9600 resistance and bring another fall. Below 1.9457 will indicate decline has resumed for next downside target of 1.9237/61 cluster support (23.6% retracement of 1.7047 to 1.9913 at 1.9237).
In the bigger picture, rising trend line support (1.8517 to 1.8834, now at 1.9574) was taken out, confirming that the rally from 1.8517 has already completed at 1.9913. Hence, as long as cable stays below 1.9731 resistance, the fall from 1.9913 should still be in force. Also, bearish divergence conditions are being displayed in weekly RSI, daily MACD and RSI already, suggesting that the whole up trend from 1.7047 might have completed. Focus is now on 1.9237/61 cluster support.
Strong rebound from or above 1.9237/61 cluster support will indicate that the current fall from 1.9913 is merely correction to the rise from 1.8517 only and cable could make another high above 1.9913 and attempt to meeting 2.0106 cluster resistance (1992 high, 100% projection of 17047 to 1.9024 from 1.8090 at 2.0067) before having a medium term reversal.
However, sustained break of 1.9237/61 cluster support will add much weight to the case that whole medium term up trend from 1.7047 has already completed much deeper decline should be seen towards next cluster support at 1.8834 (38.2% retracement of 1.7047 to 1.9913 at 1.8818) first.
The sterling pound dropped down last time since it couldn't breach up the 1.6920s support level. this time the pound is restricted between 1.9490s support level and 1.960s resistance level. Hence the main trend today is neutral.
The general trend is up as far as 1.8850and 1.8460 remain intact, targets will be at 1.9858 and 2.0000.
The key resistance at 1.9850 and the key support at 1.8960. Support: 1.9538, 1.9494, 1.9471, 1.9440, 1.9411 Resistance: 1.9557, 1.9591, 1.9623, 1.9654, 1.9686
This pair has tipped the support level 1.9470 last weekend bouncing back from the lower band of the daily Bollinger bends, with low volatility and no special market movers traders expect the range to be persistent in today's trading session with minor gains from the GBP.
Comment: Dipping below 1.9500 but managing to recover this morning. These merely underlines the difficulty we are having at these historically very high levels but the tone is well bid nevertheless. Over the coming week we favour yet another upside test of 1.9700/1.9750. Strategy: Buy at 1.9550; stop well below 1.9450. Short term target 1.9700/1.9750.
Breakaway gaps occur at the near end of a trend. It indicates the reversal and initiation of a new trend in the oposite direction.
Midway gaps occur in the midle of a movement. They indicate the midpoint of a movement, the approximate 50%. (Using this information you could have eyed an approximate termination of the correction started at .9457 around the 75% of .9457 to .9600 using the gap.
Exhaustion gaps occur after rappid rallies. The price simply looses steam and reversals and position terminations happen so massly that there is a price jump/gap.
You will notice the gap, met support exactly on top of the falling trend line, which is the same area it is currently testing support now.
We will need a good break of the .9450 area to reach below the trend line and continue on downwards to targets like .9312 > .9260
I am a little over 100 pips Live in unrealized profit from the short i entered last week, not forgetting the other 100 pips bagged last week aswell. It is all recorded here.
I didnt close my position at the correction as technicals said the price was coming back down, so i held throughout the weekend, the gap, the correction etc.
My bias is pretty much short for the moment.
If you werent short already from last week and you only got in on the correctional tip today, i recommend you set a stop around .9600.