Possible long opportunities on the GBP this morning...
The British pound sank to lows of 1.2796 Thursday, its lowest since early September. Broad-based USD strength, coupled with ongoing Brexit concerns, weighed on market sentiment. Latest headlines to emerge on the Brexit front came from UK Brexit Secretary Raab, noting that planning and preparations are in place to mitigate risks of a no-deal, saying the risk of a no-deal is real if the EU engages in an intransigent approach.
For those who read Thursday’s report you may recall the piece highlighted 1.2911/1.29 (September’s opening level/round number) as a possible sell zone, targeting 1.28ish. Well done to any of our readers who managed to jump aboard this move!
Going forward, unlike British politics at the moment, the technical picture communicates a bullish tone regarding structure. On the H4 timeframe we have the 1.28 handle along with a Quasimodo support at 1.2810 in play. Further adding to this, H4 price recently chalked up a reasonably nice-looking bullish pin-bar formation, as well as the H4 RSI indicator displaying a strong oversold reading. Daily support at 1.2804 (also represents a Quasimodo support – red arrow) is also seen in motion, alongside the top edge of weekly demand plotted at 1.2589-1.2814.
Areas of consideration:
Having seen all three timeframes highlight a buyers’ market right now, a long based around 1.2828 – a couple of pips above the high of the current H4 bullish pin-bar pattern – could be a location to contemplate going long from, with stops tucked beneath its tail: 1.2796. With respect to upside targets from this point, the 1.2867 region (represents the lower edge of a rather large H4 supply: black arrow), followed by the 1.29 handle, are logical considerations according to our technical studies.
Today’s data points: US growth figures q/q; US revised UoM consumer sentiment.
For those who read Thursday’s report you may recall the piece highlighted 1.2911/1.29 (September’s opening level/round number) as a possible sell zone, targeting 1.28ish. Well done to any of our readers who managed to jump aboard this move!
Going forward, unlike British politics at the moment, the technical picture communicates a bullish tone regarding structure. On the H4 timeframe we have the 1.28 handle along with a Quasimodo support at 1.2810 in play. Further adding to this, H4 price recently chalked up a reasonably nice-looking bullish pin-bar formation, as well as the H4 RSI indicator displaying a strong oversold reading. Daily support at 1.2804 (also represents a Quasimodo support – red arrow) is also seen in motion, alongside the top edge of weekly demand plotted at 1.2589-1.2814.
Areas of consideration:
Having seen all three timeframes highlight a buyers’ market right now, a long based around 1.2828 – a couple of pips above the high of the current H4 bullish pin-bar pattern – could be a location to contemplate going long from, with stops tucked beneath its tail: 1.2796. With respect to upside targets from this point, the 1.2867 region (represents the lower edge of a rather large H4 supply: black arrow), followed by the 1.29 handle, are logical considerations according to our technical studies.
Today’s data points: US growth figures q/q; US revised UoM consumer sentiment.
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