I mentioned terminal week that 1.6425 was a grave level because if the toll of the GBP/USD unify winking below this level on some digit day, the Supertrend indicator would invoke flushed and mayhap communication the start of a newborn bearish trend. Well this is exactly what happened yesterday and I conceive it could be highly significant.
This indicator has been green, ie bullish, since 24th March when the toll was around 1.45 and has been ascension ever since, along with the price. Therefore this way has been in place for a rattling daylong time, which is ground I conceive it's significant. What it does stingy is that I shall be automatically hunting for brief positions on the 4 hour interpret for this pair, in accordance with my possess portion trading rules.
So if the toll is set to fall, what category of toll targets should we be hunting at?
Well if we were attractive long-term positions on the regular interpret I conceive the prototypal target is the EMA (200). This currently stands at 1.6027 and a advise below this level would sure add weight to some downwards move.
Longer term is anyone's surmisal but if we use fibonacci levels to give us a some wrinkled ideas, we get toll targets of 1.5691 (38.2%), 1.5273 (50%) and 1.4856 (61.8%) if we go from the low point of 1.3504 early in the year to the high point of 1.7043 a some weeks ago.
As always there's no guarantees that the toll module start at all, but forex trading is every most probabilities and I would say that there is a high quantity chance of the GBP/USD falling back in the coming weeks and months.
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