I was overwhelmed by all the positive feedback I got on my [B]EUR/USD[/B] and [B]AUD/USD[/B] Daily Chart Reviews, so I figured I’d add another crowd favorite to the mix – GBP/USD!
As with what I did on EUR/USD, I will be marking out important levels on GBP/USD’s 15-minute chart, highlighting market-moving events. Let the color scheme below be your guide:
Green – previous day high and low (PDL)
Blue – previous week high low (PWL)
Pink – day open price (DO)
Purple – week open price (WO)
Black – major (00s) and minor psychological (50s) handles (will also be called MaPs and MiPs)
I hope this helps!
To start things off, here’s my very first chart review on GBP/USD:
What do you guys think? Tune in here everyday to get more chart reviews of GBP/USD!
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Nice thread. It really helps to find out the reaction of market to major events which will definitely help as a catalyst to determine market flow in future against those events. Keep on rocking…
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Those discussions of a potential rate cut at the last Bank of England MPC meeting sank the pound early in yesterday’s London session!
Price action also just stopped short of retesting the cluster of inflection points before reversing during the New York session.
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We saw solid support at around 1.5650 in the first half of the day. And action was particularly hot in the hours surrounding the release of U.K. retail sales data!
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After chillin’ like a villain during the Tokyo and early London session, Cable crawled lower as risk aversion helped the dollar rally. Technical levels didn’t hold too well.
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GBP/USD was all about risk aversion on this day. From its opening price, it fell all the way down to 1.5500 – an over 100-pip drop!
That bearish divergence play at the 1.5550 MiPs was a pretty sweet setup!
The release of U.K. GDP data set off fireworks on GBP/USD! From the previous day high (PDH), it fell right down to the previous day low (PDL)!
Not much activity on GBP/USD at the start of the day… but boy, did the market wake up in the London session after Draghi’s supportive comments! A 200-pip rally, son!
Looks like the market was all gassed out after Thursday’s big rally! Even with the release of the U.S. GDP report, GBP/USD spent the day trading sideways, with the 1.5700 handle acting as an area of interest.
Once again, 1.5750 proved to be too tough a resistance level for the market to crack! GBP/USD found itself sliding down the chart in the first half of the day, only to trade choppily around 1.5700 in the second half.
GBP/USD found resistance at the week open (WO) and this level served as the day’s high. From there, price tumbled all the way down below 1.5650 before coming to rest near the previous day low (PDL).
After briefly retesting the DO, GBP/USD shot down, most probably because of the poor manufacturing PMI. The pair kept dropping throughout the New York session, and eventually bottomed out at the 1.5550 mark.
The ECB’s rate decision was the main market mover on GBP/USD. It caused the pair to spike up sharply, only for it to reverse directions and erase all its gains later on!
After consolidating early during the Tokyo session, GBP/USD broke higher once the U.S. NFP report showed better-than-expected results! Risk on baby!
We got a perfect midday reversal at the 1.5550 minor psychological handle, homies! And a bullish divergence as confirmation to boot!
Cable slid lower during the Tokyo session but soon registered bullish divergence and powered higher during the London session. It eventually tested the PDH before settling later on.
The BOE inflation report and Mervyn King’s big speech was this day’s market mover. His words pushed Cable up about 80 pips!
Dang that PDH held really nicely! Cable dropped a good 60 pips after testing it during the Tokyo session!
A perfect double bottom preceded the strong rally that we saw in the New York session… not to mention a sweet bullish divergence!
