Possible shorting opportunities observed on the GBP/USD, traders
Weekly perspective:
Another big loser on the week amid a mix of ongoing Brexit uncertainty, political upheaval and BoE policy perceptions as ‘no-deal’ prospects increased. Erasing in excess of 230 pips last week, cable eventually shook hands with demand located at 1.2589-1.2814. Having seen this area tested once already in August 2017, further selling could be seen. Beyond the current zone, demand marked with a green arrow at 1.2365-1.2555 is likely the next hurdle in the firing range, but with the 2017 yearly opening level lurking just beneath it at 1.2329, price could possibly fake lower to bring in buyers from this hurdle.
Daily perspective:
Demand at 1.2716-1.2759 (fixed within the walls of weekly demand mentioned above at 1.2589-1.2814), as you can see, was brought into the fray going into the week’s end. To the upside, resistance stands at 1.2831, with little seen above this angle until we reach 1.2957, another level of resistance. Beneath the current demand, nevertheless, a Quasimodo support at 1.2635 is seen (not seen on the screen).
H4 perspective:
Largely upbeat UK macroeconomic data led a modest rebound on Friday, but struggled to print anything of note amid persistent USD buying. Intraday action finished the week consolidating just south of the 1.28 handle, a level breached during Asia hours. Above 1.28, traders may have noticed fresh supply stands out at 1.2836-1.2818, whereas to the downside, the 1.27 handle is likely the next port of call.
Areas of consideration:
In view of current weekly and daily demands, buying may take shape in the early stages of this week, likely bringing 1.28 on the H4 timeframe back into the fold. A large portion of intraday sellers will be looking to short this number on the retest. While a sell from here could work out, a fakeout through this number (common viewing around psychological levels to run stops) is just as likely, in our view.
Given the H4 supply at 1.2836-1.2818 boasts strong momentum to the downside and daily resistance at 1.2831 is seen positioned within the walls of this area, a sell from this supply is potentially the better option. The only grumble here, of course, is weekly buyers could theoretically push the market as far north as weekly resistance at 1.3047 (the next upside target on the weekly scale). In light of this threat, should H4 price respond from the said H4 supply and print a H4 close beneath 1.28, consider reducing risk to breakeven as soon as possible.
Another big loser on the week amid a mix of ongoing Brexit uncertainty, political upheaval and BoE policy perceptions as ‘no-deal’ prospects increased. Erasing in excess of 230 pips last week, cable eventually shook hands with demand located at 1.2589-1.2814. Having seen this area tested once already in August 2017, further selling could be seen. Beyond the current zone, demand marked with a green arrow at 1.2365-1.2555 is likely the next hurdle in the firing range, but with the 2017 yearly opening level lurking just beneath it at 1.2329, price could possibly fake lower to bring in buyers from this hurdle.
Daily perspective:
Demand at 1.2716-1.2759 (fixed within the walls of weekly demand mentioned above at 1.2589-1.2814), as you can see, was brought into the fray going into the week’s end. To the upside, resistance stands at 1.2831, with little seen above this angle until we reach 1.2957, another level of resistance. Beneath the current demand, nevertheless, a Quasimodo support at 1.2635 is seen (not seen on the screen).
H4 perspective:
Largely upbeat UK macroeconomic data led a modest rebound on Friday, but struggled to print anything of note amid persistent USD buying. Intraday action finished the week consolidating just south of the 1.28 handle, a level breached during Asia hours. Above 1.28, traders may have noticed fresh supply stands out at 1.2836-1.2818, whereas to the downside, the 1.27 handle is likely the next port of call.
Areas of consideration:
In view of current weekly and daily demands, buying may take shape in the early stages of this week, likely bringing 1.28 on the H4 timeframe back into the fold. A large portion of intraday sellers will be looking to short this number on the retest. While a sell from here could work out, a fakeout through this number (common viewing around psychological levels to run stops) is just as likely, in our view.
Given the H4 supply at 1.2836-1.2818 boasts strong momentum to the downside and daily resistance at 1.2831 is seen positioned within the walls of this area, a sell from this supply is potentially the better option. The only grumble here, of course, is weekly buyers could theoretically push the market as far north as weekly resistance at 1.3047 (the next upside target on the weekly scale). In light of this threat, should H4 price respond from the said H4 supply and print a H4 close beneath 1.28, consider reducing risk to breakeven as soon as possible.
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