Possible 3 leg to the downside after breaking support level 142.50, retesting it as resistance and currently consolidating beneath it. I'm expecting a break to the downside of the consolidation box and a completion of the fib D extension at 140.40, 40 pips above the monthly support 140.00, after rejecting the 38.70 - 50.00 fib zone.
Looking at it from a bigger perspective on the daily, with a bullish eye we meet the 50.00 fibonacci at 140.40 and the 61.80 at the bearish fib D2 extension at 139.30 which means that there's going to be a high demand for the bulls between 140.40 - 139.30
Fundamentally, GBP is very weak at the moment after a serie of weak results with all numbers coming in lower than expected on monday.
Brexit still playing its part and more negative news could make us break 140.00 easily and go beyond.
Trade taken at wick highs on the resistance of the consolidation box 142.39. SL 30 higher than the weekly resistance and TP at fib D extension 140.40
Looking at it from a bigger perspective on the daily, with a bullish eye we meet the 50.00 fibonacci at 140.40 and the 61.80 at the bearish fib D2 extension at 139.30 which means that there's going to be a high demand for the bulls between 140.40 - 139.30
Fundamentally, GBP is very weak at the moment after a serie of weak results with all numbers coming in lower than expected on monday.
Brexit still playing its part and more negative news could make us break 140.00 easily and go beyond.
Trade taken at wick highs on the resistance of the consolidation box 142.39. SL 30 higher than the weekly resistance and TP at fib D extension 140.40
Comment:
SL moved to 143.10 . Would like to hold this trade until the news releases of cpi, ppi and rpi since I'm expecting more negative outcomes after Monday's poor actual numbers.
Comment:
SL moved to 143.40
