Watching GBPUSD's well-behaved Fibonacci retracements

FX:GBPUSD   British Pound/U.S. Dollar
These Fibonacci levels are redrawn every time a -23.6% line or 61.8% line is broken. On this 15 minute chart the fibs are based on 120 minute bars to reduce the noise of the 15 minute time frame - blue arrows show when fibs were redrawn due to a close beyond the green or red lines of the prior set of fibs.

Based on past observations, price will likely cycle between 50% & 0% until something changes in fundamentals that causes price to break the green or red lines. Sometimes - when nothing much is going on - the 38.2% line will provide support/resistance , so it is turned on for this chart. It never seems to carry as much weight as the 50% line in terms of support/resistance .

In accordance with my personal trading plan, the 50% retrace (yellow line) will be a potential short entry, -23.6% (green line) a potential long entry.

Here is the same chart seen in 120 minute bars, the timeframe on which the fibs are based. Following the initial swing, the 50%, 61.8%, and -23.6% lines often highlight a likely trading range until the next larger swing takes place.

Another trend change on 120 minute fib with a sharp pullback to the new 50% yellow line

When there are several trend changes in rapid succession, it helps to step back and use a higher resolution fib pattern.

This pattern was calculated on 8 hour bars versus 2 hour bars and shows how the lower timeframe trends are always part of a higher timeframe cycle.
Ideas Scripts Chart
United States
United Kingdom
Home Stock Screener Forex Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Account and Billing Sign Out