Yellow zones- critical zones based on the monthly/ weekly timeframe
Red zones- critical zones based on the daily timeframe
Blue zones – critical zones based on the 4h timeframe
Orange zones – critical zones based on the 1h timeframe
According to last week’s GBP COT report we can see a strong increase in the long “contract” sizes. Even a decrease in short positions can be seen within the long-term investors. This can lead to a strong break above the 126.700 mark.
Since March the price has been in a closed triangle on the daily timeframe. Now it has once again made a close above its upper trendline. Before that it received strong support from the daily critical area near the 125.200 mark.
The price is coming close the the monthly critical area near 126.600 and we have 2 possible scenarios:
1. Price doesn’t do the correction and moves straight towards 127.600. After that a correction will take place.
2. Price falls back to 125.700 where we have a triple bullish confirmation. A perfect match between the 0.618 Fibonacci level, the upper trendline of the closed triangle and the 1H critical area as well. All these factors will push the price towards the monthly critical once again and will most likely lead the price towards 127.600.
For all the entries, strong rejections will be a good sign to enter.
Happy Trading!
Red zones- critical zones based on the daily timeframe
Blue zones – critical zones based on the 4h timeframe
Orange zones – critical zones based on the 1h timeframe
According to last week’s GBP COT report we can see a strong increase in the long “contract” sizes. Even a decrease in short positions can be seen within the long-term investors. This can lead to a strong break above the 126.700 mark.
Since March the price has been in a closed triangle on the daily timeframe. Now it has once again made a close above its upper trendline. Before that it received strong support from the daily critical area near the 125.200 mark.
The price is coming close the the monthly critical area near 126.600 and we have 2 possible scenarios:
1. Price doesn’t do the correction and moves straight towards 127.600. After that a correction will take place.
2. Price falls back to 125.700 where we have a triple bullish confirmation. A perfect match between the 0.618 Fibonacci level, the upper trendline of the closed triangle and the 1H critical area as well. All these factors will push the price towards the monthly critical once again and will most likely lead the price towards 127.600.
For all the entries, strong rejections will be a good sign to enter.
Happy Trading!