Shorts at 1.31 an option today, traders...
GBP/USD:
Limited progress made in discussions with the EU ahead of next week's Meaningful Votes in Parliament, and some ‘sympathy selling’ alongside the euro (hammered post-ECB), collectively weighed on the British pound Thursday, down 0.67% as of writing.
Leaving the underside of 1.32 unchallenged, the H4 candles dethroned February’s opening level at 1.3108 and neighbouring psychological level 1.31. Demand at 1.3050-1.3099 is seen to the left of current price (red arrow), which could hamper further downside. A break of this area, however, may call for a move towards the key figure 1.30.
The outlook on the weekly timeframe supports further selling beyond 1.31, as the pair continues to occupy the lower edge of supply pictured at 1.3472-1.3204 (positioned south of the 2018 yearly opening level at 1.3503). In addition to this, daily flow appears poised to shake hands with demand chalked up at 1.2968-1.3035, which happens to hold a 61.8% Fibonacci value within at 1.2998 – considered the second take-profit target for those short the ABCD bearish pattern (black arrows)/Quasimodo resistance at 1.3315.
Areas of consideration:
Aside from minor H4 demand present at 1.3050-1.3099, all three timeframes portend lower levels. As a result of this, the underside of 1.31/1.3108 (H4) is potential resistance to work with today, targeting the top edge of daily demand at 1.3035 as the initial downside target, followed by the 1.30 handle on the H4 (merges with the daily 61.8% Fibonacci value mentioned above at 1.2998).
For traders wishing for a little more confirmation from 1.31, waiting for a H4 bearish candlestick formation to come about is an option. Not only will the candlestick signal identify seller intent, it’ll serve as a guide for entry and risk levels as well.
Today’s data points: US Average Hourly Earnings m/m; US Non-Farm Employment Change; US Unemployment Rate; US Building Permits.
Limited progress made in discussions with the EU ahead of next week's Meaningful Votes in Parliament, and some ‘sympathy selling’ alongside the euro (hammered post-ECB), collectively weighed on the British pound Thursday, down 0.67% as of writing.
Leaving the underside of 1.32 unchallenged, the H4 candles dethroned February’s opening level at 1.3108 and neighbouring psychological level 1.31. Demand at 1.3050-1.3099 is seen to the left of current price (red arrow), which could hamper further downside. A break of this area, however, may call for a move towards the key figure 1.30.
The outlook on the weekly timeframe supports further selling beyond 1.31, as the pair continues to occupy the lower edge of supply pictured at 1.3472-1.3204 (positioned south of the 2018 yearly opening level at 1.3503). In addition to this, daily flow appears poised to shake hands with demand chalked up at 1.2968-1.3035, which happens to hold a 61.8% Fibonacci value within at 1.2998 – considered the second take-profit target for those short the ABCD bearish pattern (black arrows)/Quasimodo resistance at 1.3315.
Areas of consideration:
Aside from minor H4 demand present at 1.3050-1.3099, all three timeframes portend lower levels. As a result of this, the underside of 1.31/1.3108 (H4) is potential resistance to work with today, targeting the top edge of daily demand at 1.3035 as the initial downside target, followed by the 1.30 handle on the H4 (merges with the daily 61.8% Fibonacci value mentioned above at 1.2998).
For traders wishing for a little more confirmation from 1.31, waiting for a H4 bearish candlestick formation to come about is an option. Not only will the candlestick signal identify seller intent, it’ll serve as a guide for entry and risk levels as well.
Today’s data points: US Average Hourly Earnings m/m; US Non-Farm Employment Change; US Unemployment Rate; US Building Permits.
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