I mentioned terminal hebdomad that 1.6425 was a grave take because if the toll of the GBP/USD unify winking beneath this take on some one day, the Supertrend indicator would turn flushed and possibly signal the advise 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 locate for a rattling daylong time, which is why 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 gift with my possess particular trading rules.
So if the toll is ordered to fall, what category of toll targets should we be hunting at?
Well if we were attractive long-term positions on the daily interpret I conceive the prototypal direct is the EMA (200). This currently stands at 1.6027 and a advise beneath this take would sure add weight to some downwards move.
Longer constituent is anyone's guess but if we use fibonacci levels to give us a few 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 saucer of 1.3504 early in the assemblage to the broad saucer of 1.7043 a few weeks ago.
As ever there's no guarantees that the toll will fall at all, but forex trading is every most probabilities and I would feature that there is a broad probability quantity of the GBP/USD dropping backwards in the reaching weeks and months.
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