I wasn’t messing with the Pound overnight/this morning (I’m EST)…
Instead, I pounced on the EURO rally into 1.4 to fade it.
Hope no one got trapped trying to buy @ the top- we’re @ 3 year highs just under 1.4 … yikes!
Price couldn’t even breach the level before sellers came in hard- it touched 3995 and is currently selling of 100+ points.
I got in @ 3980 reading the M5 chart.
The interesting thing was how cable reacted, I was interested to see would Mr Bank take some profit on cable amid all the panic, but no, he sat on his hands and did little.
I figure he will wait until tomorrow, if news is bad he’ll do some selling, if good then he’ll say, I’ll have some more please.
I may have the opportunity of copying him, the level will be in the upcoming AS, prob around 6920ish, maybe even down to 6895 - depends on how the Asians play it.
I figure that if price goes below 6880 then the news is bad and I’ll not want to be long there.
Possible that Fibre could be dragged up along with cable in LO.
Fair play to Draghi, at least he got us some action.
First up, the GBP news was better than exp, (as Mr Bank had no doubt anticipated), but yet cable fell.
Could I have anticipated this? - well yes, I mentioned Cable pulling up Fibre, well of course the opposite could always happen and did. bank was undecided which was going to be the case, add in more or take some profit.
But, as it happens, there was a large indicator of his indecision, the Asian range.
The Asians played it very tight on Fibre, there is one sure fire way to know when Bank is undecided - when he does nothing.
GBP/USD had an ascending trend without a noticeable reformation during the recent weeks that shows buyer certainty in reaching to the predetermined targets. The price could record the top price of 1.70000 in Weekly time frame which is fixed by descending candle(Shooting Star Pattern).The price by reaching to the resistance Up Channel edge and also the round resistance level of 1.70000 (buyers use these levels to exit their trades) has been stopped from more ascend and by forming a Harami candlestick patterns( possibility of formation of a top price and changing price direction)and fixing of it by a descending candle has prepared the field for creating a top price and a descending trend.
Currently price is under 5-day moving average in daily and 4H time frames that warns about descending of price during the next candles.As it is obvious in the picture below, there is an AB=CD harmonic pattern between the bottom price of 1.62491 and the top price of 1.70000 with none-ideal ratios of 61.8 to 127.2 that warns about descending of price from the D point of this pattern.As it is obvious in the picture bellow, according to the formed movements, the price is in divergence mode with Stoch indicator and confirms the mentioned top price is Daily time frame which generally warns the possibility of changing price direction.Generally until the price level of 1.70000 is preserved, price will have the potential for reformation and descending.
Yep, the earnings report is the short term clincher, no pressure from higher labour costs, in theory, will keep inflation under check - thus no pressure for higher interest rates.
I know some of the calendars mark this one ‘orange’, but maybe should be ‘red’.
Looks like we got filled @ almost the same price- my AVG OPEN was 6772 how about yours?
6850-6860 zone is a sticky point, but if we can clear it, 6900 would be on deck. Get passed that, and a retest of 1.7 lines up.
Nice write up again FU. If I were to be picky though? I’m guessing its leaning toward too technical in both the terminology and technical analysis. Both top tier but to a newb (your audience?) hard to keep up.
I’m guessing its leaning toward too technical in both the terminology and technical analysis. Both top tier but to a newb (your audience?) hard to keep up.