Correction Wave Incoming! - GU
Updated
Here I have GBP/USD on the Daily Chart!
After our New High since August 2023 @ 1.28938 , we've seen Price decline quite drastically!
In fact, we were given a NEW LOWER LOW on Tuesday @ 1.24052!
Now with this Low having been created after our Lower High @ 1.2708 (Point B), this Price Action breaking our previous Low @ 1.25394 CONFIRMS my prediction that we could be looking at a Correction Wave!!
-Will our Support Zone turn RESISTANCE?!?
I will be looking for Price to make a Retracement to our Fibonacci Levels in our Support Zone for a SELL ENTRY @ ( 1.25241 - 1.25394 )
Range Target @ ( 1.21346 - 1.19992 )
SL @ 1.25932
*Levels Subject To Change*
Fundamentally for the remainder of the week,
GBP - Retail Sales (Fri)
USD - Unemployment Claims/Philly Manufacturing Index/Existing Home Sales (Thur)
*Next Week we will be getting PMI numbers so WATCH FOR NEWS!!
After our New High since August 2023 @ 1.28938 , we've seen Price decline quite drastically!
In fact, we were given a NEW LOWER LOW on Tuesday @ 1.24052!
Now with this Low having been created after our Lower High @ 1.2708 (Point B), this Price Action breaking our previous Low @ 1.25394 CONFIRMS my prediction that we could be looking at a Correction Wave!!
-Will our Support Zone turn RESISTANCE?!?
I will be looking for Price to make a Retracement to our Fibonacci Levels in our Support Zone for a SELL ENTRY @ ( 1.25241 - 1.25394 )
Range Target @ ( 1.21346 - 1.19992 )
SL @ 1.25932
*Levels Subject To Change*
Fundamentally for the remainder of the week,
GBP - Retail Sales (Fri)
USD - Unemployment Claims/Philly Manufacturing Index/Existing Home Sales (Thur)
*Next Week we will be getting PMI numbers so WATCH FOR NEWS!!
Trade active
Price has started to push HIGHER! I've entered a Buy Entry @ 1.2465 to take up to our Sell Zone @ ( 1.25214 - 1.25394 )
SL @ 1.2448
Note
GBP PMI Numbers came in!-Manufacturing came in COLD
-Services came in HOT
Currently we are seeing a rise in price from the LOW @ 1.22992
Based off the HIGH @ 1.28938
I'll be looking for price to make a Retracement to our Target Fib Zone for a SELL ENTRY @ ( 1.25614 - 1.25263 )
SL @ 1.26667
Note
Negative PMI readings for USD is just what this trade idea needed!!- With results coming in MUCH COOLER than forecasted showing some significant contractions in both Services and Manufacturing, we are seeing USD lose all strength!
What does this mean for GU?
- Price will be looking to correct to our Targeted Fib Zone!
Trade active
Upon arrival to our Targeted Fib Zone, price halted at 1.2520 ( 61.8% Fib Level ) before making a strong fall down!I believe this area is active so I took a Sell Entry @ 1.2520
SL @ 1.2575
-Price may test our Zone multiple times, keep vigilant for another entry and for price to potential pull up further before falling further
Note
RESULTS ARE IN!!! Mixed results from COOLER than expected GDP and LOWER Unemployment sees DXY gain a boost!
-Price dropping!
Note
Last weeks analysis stayed well intact all the way up until PCE results came in HOTTER than expected ending the week with a little boost for the DXY!-We were given 2 solid entries with price coming into our Targeted Fib Zone with a well placed SL!
Next week fundamentally is a big one for DXY being the beginning of the month:
ADP Non-Farm, Manufacturing PMI, JOLTS, Funds Rate (Wed)
Unemployment Claims (Thur)
Average Hourly Earnings, Non-Farm, Unemployment Rate, Services PMI (Fri)
Novi_FIbonacci
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