Weekly gain/loss: - 138 pips
Weekly closing price: 1.2870
Last week’s sharp run to the downside pushed the British pound into further losses, stripping close to 150 pips off its value. From the weekly timeframe, the next notable area to keep an eye on is the demand base coming in at 1.2589-1.2759. What’s also notable from a technical perspective on this chart is the two intersecting trendline supports positioned just beneath the demand zone (1.2774/1.1986).
Meanwhile, on the daily timeframe there’s a nearby support area marked at 1.2818-1.2752, seen intersecting nicely with a channel support line etched from the low 1.2365 (green circle). Also of particular interest is this area happens to be glued to the top edge of the aforementioned weekly demand.
Since Tuesday, the H4 candles have been consolidating between the 1.29 handle and the mid-level support at 1.2850 (encased within this range is June’s opening level at 1.2870). Early on in Friday’s US segment, nevertheless, the pair whipsawed through the lower edge of this range, and came within a few pips of testing a Quasimodo support level printed at 1.2831.
Suggestions: In view of the unit’s close proximity to the top edge of the daily support area at 1.2818, we have our eye on the 1.28 handle drawn on the H4 timeframe for possible longs. Given the support and resistance delivered from this psychological band in the past, and its connection with the converging daily support area and channel support, we feel a long from here is high probability.
However, since round numbers are prone to fakeouts, we would not feel comfortable placing pending orders here. Instead, we’ll wait for a H4 bull candle to form in the shape of a full, or near-full-bodied candle, before pulling the trigger. As for take-profit targets, we’ll be looking to the 1.2850 neighborhood as the initial area of concern.
Data points to consider: No high-impacting events scheduled to be released today.
Levels to watch/live orders:
• Buys: 1.28 region (waiting for a reasonably sized H4 bullish candle to form– in the shape of either a full, or near-full-bodied candle – is advised, stop loss: ideally beyond the candle’s tail).
• Sells: Flat (stop loss: N/A).
Weekly closing price: 1.2870
Last week’s sharp run to the downside pushed the British pound into further losses, stripping close to 150 pips off its value. From the weekly timeframe, the next notable area to keep an eye on is the demand base coming in at 1.2589-1.2759. What’s also notable from a technical perspective on this chart is the two intersecting trendline supports positioned just beneath the demand zone (1.2774/1.1986).
Meanwhile, on the daily timeframe there’s a nearby support area marked at 1.2818-1.2752, seen intersecting nicely with a channel support line etched from the low 1.2365 (green circle). Also of particular interest is this area happens to be glued to the top edge of the aforementioned weekly demand.
Since Tuesday, the H4 candles have been consolidating between the 1.29 handle and the mid-level support at 1.2850 (encased within this range is June’s opening level at 1.2870). Early on in Friday’s US segment, nevertheless, the pair whipsawed through the lower edge of this range, and came within a few pips of testing a Quasimodo support level printed at 1.2831.
Suggestions: In view of the unit’s close proximity to the top edge of the daily support area at 1.2818, we have our eye on the 1.28 handle drawn on the H4 timeframe for possible longs. Given the support and resistance delivered from this psychological band in the past, and its connection with the converging daily support area and channel support, we feel a long from here is high probability.
However, since round numbers are prone to fakeouts, we would not feel comfortable placing pending orders here. Instead, we’ll wait for a H4 bull candle to form in the shape of a full, or near-full-bodied candle, before pulling the trigger. As for take-profit targets, we’ll be looking to the 1.2850 neighborhood as the initial area of concern.
Data points to consider: No high-impacting events scheduled to be released today.
Levels to watch/live orders:
• Buys: 1.28 region (waiting for a reasonably sized H4 bullish candle to form– in the shape of either 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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