Weekly closing price: 1.2595
Weekly opening price: 1.2567
Weekly view: GBP bulls, once again, went on the offensive last week, consequently bringing the pair to highs of 1.2673 by the close. This, as you can see, is the second consecutive weekly gain. Providing the bulls continue to dominate, we might, just might see price connect with the drawn from 1.2942.
Daily view: In conjunction with the weekly structure, the daily candles look poised to extend north to a carved from 1.2789-1.2928 (located just below the above mentioned weekly resistance). Additionally, daily action also appears to be in the process of forming the D-leg of an which happens to terminate at 1.2812, and is positioned just ahead of a 61.8% Fib resistance at 1.2853 (both housed within the above noted ).
H4 view: During the course of Friday’s sessions, we saw London push the pair higher going into its open, breaking through the 1.26 hurdle and clocking a high of 1.2673. In consequence to this, a nice-looking demand base was formed at 1.2525-1.2553 that converges perfectly with the mid-way support at 1.2550. With this morning’s opening candle gapping around 30 pips lower, price has already came within a cat’s whisker of striking the top edge of this base!
Direction for the week: Ultimately, we believe the unit is heading higher until we reach the above said daily .
Direction for today: Knowing that the higher-timeframe structure portends further buying; the team feels a possible ‘buy the dip’ scenario may be at hand today.
Our suggestions: H4 demand at 1.2525-1.2553 is a tempting zone for longs this morning due to what’s been noted on the higher timeframes. With that being said, nevertheless, we would not advise placing pending orders here due to the possibility of a fakeout down to the 1.25 handle. Therefore, waiting for at least a reasonably sized H4 candle to form may be the safer route to take here.
Levels to watch/live orders:
• Buys: 1.2525-1.2553 (reasonably sized H4 close required prior to pulling the trigger, stop loss: ideally beyond the trigger candle).
• Sells: Flat (stop loss: N/A).