GbpUsd | What's Next?
Updated
Starting from the weekly, we recently printed a LH by way of an evening star pattern. Last week's candle showed heavy indecision but closing with a bullish body. On the daily we experienced 5 straight days of dojis (daily) with 2 closing bearish. From this, I can conclude a complete deceleration in momentum from the sellers seeing 2 days straight of seller exhaustion. It is also important to note that on last Thursday, the buyers had their biggest day but evidence of sellers rushed back in with the large top wick. This liquid area where the deceleration occurred is also the retest of a daily double bottom neckline.
Moving the the 4H, (and understanding that our retested neckline is also breached supply by my predetermined market flow laws) we see a more blatant push by the buyers. A HL has formed on the Right Shoulder to an inverted head and shoulders and the 1.2350 level was breached briefly prior to the HL.
Going forward, I would like to play some bullish MF off breached resistances and retested demand zones. If we do begin to fall short I'll target 1.22 and 1.20 respectively. I am currently favoring longs to 1.25 and 1.275 respectively.
Moving the the 4H, (and understanding that our retested neckline is also breached supply by my predetermined market flow laws) we see a more blatant push by the buyers. A HL has formed on the Right Shoulder to an inverted head and shoulders and the 1.2350 level was breached briefly prior to the HL.
Going forward, I would like to play some bullish MF off breached resistances and retested demand zones. If we do begin to fall short I'll target 1.22 and 1.20 respectively. I am currently favoring longs to 1.25 and 1.275 respectively.
Comment
Quite the close for GU, big bearish body with a generous wick showing the sellers hard fought win. Momentum definitely seems short but price did not close below the key level 1.22862. Buyers have some fight in them. Brexit news is key for this pair as well. If 1.22862 holds going into London, I may look to take long to 1.24 and then 1.25.
If 1.22862 breaks, I'll look for the reaction in my demand zone just below near 1.2227/1.2204
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