Harmonic area successfully held, will we see 1.5400??
Weekly view – The weekly timeframe shows that active buying recently come into the market a few pips from above a weekly swap level positioned at 1.5144.Assuming that the buyers can continue with this tempo, it’s possible we may see price challenge the weekly swap level 1.5451, or given enough time, the weekly supply area seen just above it at 1.5824-1.5634.
Daily view: From this timeframe, we can see that price rebounded just beautifully from the daily demand area seen at 1.5088-1.5216 (surrounds the aforementioned weekly swap level), consequently taking back any losses incurred on Monday.
4hr view: For those who read our previous report on the GBP, you may recall that we placed a pending buy order at 1.5228, just above a 4hr Harmonic Bat completion area seen in green at 1.5224-1.5164 (located around the upper limits of the aforementioned daily demand area). As you can see, our order was filled on Monday, and is now in profit. We have already crossed the first barrier where we expected trouble – 1.5300, now we have our eye on the first take-profit area 1.5400 which converges with the Fibonacci retracement value 0.382 (A-D retracement), this will be where we will likely move our stop to breakeven. Following this, our final take-profit target will likely be set around the 1.5550 mark – the 0.618 Fibonacci retracement level.
Before price reaches our first take-profit area, however, it is possible we may see a retracement back down to retest 1.5300, which is something we have planned for. With that, 1.5300 will be a barrier we may consider adding to our current position should we see corresponding lower timeframe confirmation…
Levels to watch/ live orders:
• Buys: 1.5228 [Live] (Predicative stop-loss orders seen at: 1.5140) 1.5300 [Tentative – confirmation required] (Predicative stop-loss orders seen at: dependent on where one confirms this level).
• Sells: Flat (Predicative stop-loss orders seen at: N/A).
Daily view: From this timeframe, we can see that price rebounded just beautifully from the daily demand area seen at 1.5088-1.5216 (surrounds the aforementioned weekly swap level), consequently taking back any losses incurred on Monday.
4hr view: For those who read our previous report on the GBP, you may recall that we placed a pending buy order at 1.5228, just above a 4hr Harmonic Bat completion area seen in green at 1.5224-1.5164 (located around the upper limits of the aforementioned daily demand area). As you can see, our order was filled on Monday, and is now in profit. We have already crossed the first barrier where we expected trouble – 1.5300, now we have our eye on the first take-profit area 1.5400 which converges with the Fibonacci retracement value 0.382 (A-D retracement), this will be where we will likely move our stop to breakeven. Following this, our final take-profit target will likely be set around the 1.5550 mark – the 0.618 Fibonacci retracement level.
Before price reaches our first take-profit area, however, it is possible we may see a retracement back down to retest 1.5300, which is something we have planned for. With that, 1.5300 will be a barrier we may consider adding to our current position should we see corresponding lower timeframe confirmation…
Levels to watch/ live orders:
• Buys: 1.5228 [Live] (Predicative stop-loss orders seen at: 1.5140) 1.5300 [Tentative – confirmation required] (Predicative stop-loss orders seen at: dependent on where one confirms this level).
• Sells: Flat (Predicative stop-loss orders seen at: N/A).
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