Hello Guys,
I feel much better now, so i thought i’d at least write a short analysis for the GBP/USD Pair.
The bounce of .9748 took us all all the way down to as low as .9514 on the 26th. after which it bounced back up to .9632 on the 27th.
If you note the chart attached you will see i’ve traced the price movements constriction with a decending channel, which seems to be tightening the further the price develops.
All of this price action is consolidation from the rally started at .8835 on the 17.11.2006, which was halted at .9846 (Bullish Rally: Start: .8835 / End: .9846)
The swing lows and highs of this sideways movement are, LOW: .9433 / HIGH: .9748
It is important to take a birdseye view of things so you know where you are and what is going on.
Even if you trade on the small time frames i recommend keeping a “trade out of the box” trading attitude and know whats going on around you.
H4 BIAS:
Price: It just bounced of the decending trend line resistance
RSI: Hovering just over 50
Stochastics: Bullish
MACD: Bullish
OVERALL SENTIMENT: Bullish
H1 BIAS:
RSI: Bounced of 70, bounced of 50, heading for 70 again. (Lame attempts at tryinng to make bullish runs which in end will just solidify the probability of a top at .9633, which will in turn fuel a drop to .9513) - I am sort of bearish on this one, and i think RSI will pop back below 50 today.
Stochastics: Bearish
MACD: Bearish
OVERALL SENTIMENT: Bearish
COUPLED BIAS:
Boy this is a tough one.
We’re pretty much seing the same thing we had last week, very mixed signals on both main charts.
All we can do i guess is go into Pipjitsu praying mode and wait for an “opportune moment”.
On the downside: A break below .9570 may take things down to .9513.
On the updside: A break above .9533 may move things to .9683 > .9697 > .9748
I am extremely influenced by the fact that RSI has bounced of 30 on H4!
Langs Cross:
H1 is showing a nice EMA spread with the White 5 EMA leading on top signifying a healthy up-move.
H4 just got out of a spread and normaly we would expect an EMA bunch to follow but considering that we are around significant R levels i feel an eventual break of them may lead to volatility that will have the White EMA shoot right through the rest and surface above the remainders (10,20,50,100,200 < in that order for a bullish move)
Either way, 5 EMA has crossed the 10 on H4, so you should have closed the short position you may have entered at .9630 / .9640 (5/10 Cross) if you used my system for a 40-50 pip profit or +76 like me if you’ve learn to optimize your exits.
Thats all i can see for now.
Regards,
E. Lang