BXY Long CallAlthough still on bearish trend but I am counting on reversal from strong feb point. Will go for long from this point.
Bxylong
BXY at a Critical AreaBXY (British Pound Currency Index) 1W & 1D:
The British Pound Currency Index has been trending to the upside since the beginning of the year. The trend is strong, moving in a classic Higher-High and Higher-Low structure.
The BXY is respecting an ascending trendline from the weekly perspective, and we are currently seeing a minor pullback towards it. We expect BXY to respect the trendline and continue bullish with the trend heading towards our next S/R area.
BXY 1W:
On the daily timeframe, the market structure of BXY is showing signs of strength. We have the ascending trendline acting as support, which has been retested three times previously, confirming its strength.
Recently, the BXY has been ranging inside a corrective descending parallel channel structure since the 25th of February 2021. Moreover, the price has bounced from the bottom of the parallel channel, and it was also rejected from the 50% retracement level. We are now in a critical area, which is highlighted in a red triangle on the chart.
Suppose the BXY manages to break above the 50% retracement level. It will confirm that the corrective downside move has ended, and there is a higher probability of bullish continuation.
However, suppose BXY manages to break below the ascending trendline and closes a daily candle below the 0% fib level. In that case, we can expect the index to meltdown towards the EQ line, which confluences with the -27.20% fib level extension. Shall the BXY continue the bearish momentum. We can expect it to drop towards our S/R area (133.00 - 134.00), which also confluences with both the -61.80% fib level extension and the lower trendline of the descending parallel channel.
Analyzing market sentiment data, it is evident that dumb money (retailers) are heavily shorting the GBP, which indicates that the market will move in the opposite direction. As it has always been the case historically.
BXY 1D:
BXY under bearish pressure! BXY is facing bearish pressure from our first resistance where we might be seeing a further drop to our first support level. Stochastic is also approaching our first resistance where we might be seeing a further drop in price.
BXY Approaching Support, Potential Bounce! BXY is approaching our first support where we might see a corresponding bounce in price to our first resistance level.
BXY under bearish pressure, bearish below first resistance levelBXY is approaching our first resistance where we might see a corresponding drop in price to our first support level at 6.974. Stochastic is also seeing bearish pressure from its resistance line.
Trading CFDs on margin carries high risk.
Losses can exceed the initial investment so please ensure you fully understand the risks.
BXY appraoching resistance, potential drop! BXY is approaching our first resistance where we might see a corresponding drop in price to our first support level. Stochastic is approaching resistance level as well.
BXY approaching resistance, potential drop! BXY is approaching our first resistance at 7.0216 (horizontal overlap resistance, 61.8% Fibonacci retracement, 61.8% Fibonacci extension) where a strong drop might occur below this level pushing price down to our major support at 6.9631 (61.8% Fibonacci retracement, horizontal swing low support).
Stochastic is also approaching resistance where we might see a corresponding drop in price.
Trading CFDs on margin carries high risk.
Losses can exceed the initial investment so please ensure you fully understand the risks.
BXY approaching resistance, potential drop! BXY is approaching our first resistance at 7.0216 (horizontal overlap resistance, 61.8% Fibonacci retracement, 61.8% Fibonacci extension) where a strong drop might occur below this level pushing price down to our major support at 6.9631 (61.8% Fibonacci retracement, horizontal swing low support).
Stochastic is also approaching resistance where we might see a corresponding drop in price.
Trading CFDs on margin carries high risk.
Losses can exceed the initial investment so please ensure you fully understand the risks.
