Yellow zones- critical zones based on the monthly time frame
Red zones- critical zones based on the daily time frame
Blue zones – critical zones based on the 4h time frame
According to last week’s GBP COT Report we can see a big increase in the “long” contract sizes, while the JPY COT Report shows us quite the opposite. This can indicate for a second attempt towards the 136.000 mark.
From a technical perspective we are in a closed triangle since the beginning of March which is already respected multiple times. As we told previously the price will reach near the 136.000 zone and then a correction must take place. Our first possible entry was around the 134.5 mark, but we didn't see any confirmation for this to happen. This is why our next focus point is the 133.500 area.
Right now, the price is close to the bottom-trend line of the closed triangle and it aligns perfectly with the 133.500 neckline of the 4H “W” formation which we discussed last week. Not only that, as a third confirmation it also matches with the golden 0.618 Fibonacci level from the previous highs.
If this scenario takes place and the price receives support near the 133.500 area, we can expect a move towards the daily critical around 136.000. A strong close above 136.500 may lead to the break of the daily closed triangle and a possible move for the 140.000 mark.
Happy Trading!
Red zones- critical zones based on the daily time frame
Blue zones – critical zones based on the 4h time frame
According to last week’s GBP COT Report we can see a big increase in the “long” contract sizes, while the JPY COT Report shows us quite the opposite. This can indicate for a second attempt towards the 136.000 mark.
From a technical perspective we are in a closed triangle since the beginning of March which is already respected multiple times. As we told previously the price will reach near the 136.000 zone and then a correction must take place. Our first possible entry was around the 134.5 mark, but we didn't see any confirmation for this to happen. This is why our next focus point is the 133.500 area.
Right now, the price is close to the bottom-trend line of the closed triangle and it aligns perfectly with the 133.500 neckline of the 4H “W” formation which we discussed last week. Not only that, as a third confirmation it also matches with the golden 0.618 Fibonacci level from the previous highs.
If this scenario takes place and the price receives support near the 133.500 area, we can expect a move towards the daily critical around 136.000. A strong close above 136.500 may lead to the break of the daily closed triangle and a possible move for the 140.000 mark.
Happy Trading!