Sizing up the weekly chart this morning, we can see that the candles remain trading between a major resistance coming in at 1.3683 and a broken Quasimodo line at 1.3371/channel resistance-turned support extended from the high 1.2706.
On the H4 timeframe, recent events show the 1.35 handle was taken out amid yesterday’s US open, forcing price to clock a session low of 1.3431. In a similar fashion to the EUR/USD, the GBP has also chalked up a reasonably nice-looking AB=CD bullish structure (black arrows). From this angle, it’d be difficult to rule out the possibility of an upside attempt to retest 1.35 today, but we feel that the unit may want the H4 demand base seen below at 1.3381-1.3405 before serious buyers step in. Not only does the area converge with the AB=CD’s 127.2% extension at 1.3413, it has a round number lodged within at 1.34 and sits directly above the noted broken weekly Quasimodo line.
Suggestions: Put simply, we will not be looking to long this market UNTILL H4 price has shook hands with the aforesaid H4 demand. A word of caution though, there is a strong possibility that this area may suffer a fakeout given the weekly support lurking just below it. For that reason, we would advise waiting for additional H4 candle confirmation before pulling the trigger.
Data points to consider: US CB Consumer confidence along with New home sales at 3pm; FOMC member Brainard speaks at 3.30pm, follow by Fed Chair Yellen at 5.45pm GMT+1.
Levels to watch/live orders:
• Buys: 1.3381-1.3405 (waiting for a reasonably sized H4 bullish candle to form – preferably a full, or near-full-bodied candle – is advised, stop loss: ideally beyond the candle’s tail).
• Sells: Flat (stop loss: N/A).
On the H4 timeframe, recent events show the 1.35 handle was taken out amid yesterday’s US open, forcing price to clock a session low of 1.3431. In a similar fashion to the EUR/USD, the GBP has also chalked up a reasonably nice-looking AB=CD bullish structure (black arrows). From this angle, it’d be difficult to rule out the possibility of an upside attempt to retest 1.35 today, but we feel that the unit may want the H4 demand base seen below at 1.3381-1.3405 before serious buyers step in. Not only does the area converge with the AB=CD’s 127.2% extension at 1.3413, it has a round number lodged within at 1.34 and sits directly above the noted broken weekly Quasimodo line.
Suggestions: Put simply, we will not be looking to long this market UNTILL H4 price has shook hands with the aforesaid H4 demand. A word of caution though, there is a strong possibility that this area may suffer a fakeout given the weekly support lurking just below it. For that reason, we would advise waiting for additional H4 candle confirmation before pulling the trigger.
Data points to consider: US CB Consumer confidence along with New home sales at 3pm; FOMC member Brainard speaks at 3.30pm, follow by Fed Chair Yellen at 5.45pm GMT+1.
Levels to watch/live orders:
• Buys: 1.3381-1.3405 (waiting for a reasonably sized H4 bullish candle to form – preferably a full, or near-full-bodied candle – is advised, stop loss: ideally beyond the candle’s tail).
• Sells: Flat (stop loss: N/A).
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