We have a massive liquidity pool below March low, a ton of sell stops, The idea is Market makers will be using them to pair large fund long long orders Should price rally, the Central banks will use this price displacement to fill in the imbalanced area that was left during the drop
Inducing sellers on a fake out, and reversal to purge the existing sellers on a double top & inducing new buyers and possibly reversing back down
Seond leg to the sky, i don't see a reason why th GBP should drop, but i see many reasons why it is very likely to rise.
Strong impulse, indicating a willingness to trade high, a rebalance might occur before the continuation
Now that we have a successful auction, 2nd level of liquidity has been tapped on, we might return the origin of the move, before we rally up once more Find more explanation on the link attached below
Dollar index left a gap untraded and i belive it"s time to go back to fill it
Bulls trapped on a weekly level with a strong drop and stops taken out on the daily and down we go PS: on the bulltrap move an imbalance was behind , which it might be filled before we drop again if the big guys decide to trap buyers again on the "Resistance breakout" followed buy a strong move to the downside. That's my perspective.
Liquidity orchestrated, Buyers trapped, Stops taken out, and way down we go...
Beside the TA depicted on the chart, the Non com has opened +10,485 worth of contracts short and closed 3,758 longs.
The market has reacted to an unproperly filled gap, and since CAD is in a correction after a strong rally, I believe the market will probably reprice back to midrange.