Potential retest play at 1.31???
GBP/USD:
H4 movement, after rebounding from its support area priced in at 1.3150-1.3121, endeavoured to regain 1.32 status Tuesday, though failed in dramatic fashion. The British pound, amid US trading hours, yielded ground to the US dollar, as the pair shrivelled over plan B Brexit concerns. UK lawmakers rejected the key Cooper’s amendment B, along with amendments A, O, G, J also rejected by Parliament.
From a technical viewpoint, the H4 candles, in one fell swoop, overthrew the 1.31 handle, consequently uncovering nearby steep trend line support (taken from the low 1.2373), shadowed closely by the key figure 1.30. Viewing the market from the weekly timeframe, we can see weekly price action engaging with the lower boundary of supply drawn from 1.3472-1.3204. Tailed closely by a 2018 yearly opening level at 1.3503, the current supply, which already capped upside successfully once already in October 2018, houses a healthy chance of repeating history here. A closer reading of the market, however, reveals recent selling pressured price action towards a support area coming in at 1.3072-1.2984. This area fuses nicely with the steep H4 trend line support mentioned above, as well as the 1.30 handle.
Areas of consideration:
In essence, we have weekly sellers digging for lower ground from supply, daily traders considering longs from a support area and H4 players potentially looking to sell the recent breakout sub 1.31.
Technical signs favour further selling, according to current price action, at least until we shake hands with the H4 steep trend line support. A retest of 1.31 as resistance, therefore, is an idea potentially worth exploring. Having seen daily price greet a support area, however, despite weekly supply, traders are urged to trade 1.31 with caution as fakeouts are common viewing around psychological numbers. Waiting for lower-timeframe candlestick confirmation to form is recommended before pulling the trigger (entry and stop parameters can be defined according to the candlestick structure).
Today’s data points: UK Net Lending to Individuals m/m; US ADP Non-Farm Employment Change; FOMC Statement, Federal Funds Rate and Press Conference.
H4 movement, after rebounding from its support area priced in at 1.3150-1.3121, endeavoured to regain 1.32 status Tuesday, though failed in dramatic fashion. The British pound, amid US trading hours, yielded ground to the US dollar, as the pair shrivelled over plan B Brexit concerns. UK lawmakers rejected the key Cooper’s amendment B, along with amendments A, O, G, J also rejected by Parliament.
From a technical viewpoint, the H4 candles, in one fell swoop, overthrew the 1.31 handle, consequently uncovering nearby steep trend line support (taken from the low 1.2373), shadowed closely by the key figure 1.30. Viewing the market from the weekly timeframe, we can see weekly price action engaging with the lower boundary of supply drawn from 1.3472-1.3204. Tailed closely by a 2018 yearly opening level at 1.3503, the current supply, which already capped upside successfully once already in October 2018, houses a healthy chance of repeating history here. A closer reading of the market, however, reveals recent selling pressured price action towards a support area coming in at 1.3072-1.2984. This area fuses nicely with the steep H4 trend line support mentioned above, as well as the 1.30 handle.
Areas of consideration:
In essence, we have weekly sellers digging for lower ground from supply, daily traders considering longs from a support area and H4 players potentially looking to sell the recent breakout sub 1.31.
Technical signs favour further selling, according to current price action, at least until we shake hands with the H4 steep trend line support. A retest of 1.31 as resistance, therefore, is an idea potentially worth exploring. Having seen daily price greet a support area, however, despite weekly supply, traders are urged to trade 1.31 with caution as fakeouts are common viewing around psychological numbers. Waiting for lower-timeframe candlestick confirmation to form is recommended before pulling the trigger (entry and stop parameters can be defined according to the candlestick structure).
Today’s data points: UK Net Lending to Individuals m/m; US ADP Non-Farm Employment Change; FOMC Statement, Federal Funds Rate and Press Conference.
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