Neither a long nor short seems attractive right now
Weekly gain/loss: +0.43%
Weekly closing price: 1.3563
The value of the British pound advanced for a third consecutive session during the course of last of last week’s trading. This, as you can see, lifted the pair to a weekly high of 1.3612 and saw the unit shake hands with a weekly channel resistance extended from the high 1.2673. In the case that this channel is engulfed, the path north should be clear up to a nearby weekly resistance plotted at 1.3683. A rejection of the channel, however, could possibly be hindered by the 2018 yearly opening level seen on the weekly timeframe at 1.3503.
Turning our attention to the daily timeframe, we can see that a daily Quasimodo resistance at 1.3618 can be seen providing additional mettle for the aforementioned weekly channel resistance. Further selling on this scale could see price approach the daily demand printed at 1.3331-1.3387, which happens to merge with a daily trendline support taken from the low 1.2108.
A quick recap of Friday’s movement on the H4 timeframe reveals that the GBP spiked to a session high of 1.3582, following a disappointing US non-farm payrolls number (148K vs. expected 190k). As can be seen from this timeframe, December’s opening level at 1.3529 sits a few pips above the noted 2018 yearly opening level seen on the weekly timeframe at 1.3503, and the 1.35 handle.
Market direction:
Technically speaking, this is a somewhat restricted market at the moment. To the upside, we have a weekly channel resistance and a daily Quasimodo resistance level at 1.3618. To the downside, December’s opening level on the H4 timeframe is likely the first port of call, followed closely by the 2018 yearly opening line and the 1.35 handle.
On account of the above, neither a long nor short seems attractive right now.
Data points to consider: UK Halifax HPI m/m at 10am; FOMC member Bostic speaks at 5.40pm; FOMC member Williams speaks at 6.35pm GMT.
Weekly closing price: 1.3563
The value of the British pound advanced for a third consecutive session during the course of last of last week’s trading. This, as you can see, lifted the pair to a weekly high of 1.3612 and saw the unit shake hands with a weekly channel resistance extended from the high 1.2673. In the case that this channel is engulfed, the path north should be clear up to a nearby weekly resistance plotted at 1.3683. A rejection of the channel, however, could possibly be hindered by the 2018 yearly opening level seen on the weekly timeframe at 1.3503.
Turning our attention to the daily timeframe, we can see that a daily Quasimodo resistance at 1.3618 can be seen providing additional mettle for the aforementioned weekly channel resistance. Further selling on this scale could see price approach the daily demand printed at 1.3331-1.3387, which happens to merge with a daily trendline support taken from the low 1.2108.
A quick recap of Friday’s movement on the H4 timeframe reveals that the GBP spiked to a session high of 1.3582, following a disappointing US non-farm payrolls number (148K vs. expected 190k). As can be seen from this timeframe, December’s opening level at 1.3529 sits a few pips above the noted 2018 yearly opening level seen on the weekly timeframe at 1.3503, and the 1.35 handle.
Market direction:
Technically speaking, this is a somewhat restricted market at the moment. To the upside, we have a weekly channel resistance and a daily Quasimodo resistance level at 1.3618. To the downside, December’s opening level on the H4 timeframe is likely the first port of call, followed closely by the 2018 yearly opening line and the 1.35 handle.
On account of the above, neither a long nor short seems attractive right now.
Data points to consider: UK Halifax HPI m/m at 10am; FOMC member Bostic speaks at 5.40pm; FOMC member Williams speaks at 6.35pm GMT.
IC Markets is an online forex broker specialized in providing transparent trading solutions to both retail and institutional investors alike. We provide superior execution technology, lower spreads and unrivaled liquidity.