perspective: From a technical standpoint, we have barely seen any change on this timeframe for quite some time now. The key thing (in our opinion) to take away from this chart is that further selling will/can only take place on the once the daily at 1.4643-1.4823 is taken out.
4hr timeframe perspective: The GBP/USD pair fell during the course of yesterday’s sessions, completely wiping out both the 1.4800 level, and the 4hr demand area seen at 1.4721-1.4767. This consequently resulted in price testing the 4hr Quasimodo seen just below this demand at 1.4698.
From where we’re standing, buying from this 4hr Quasimodo is not something we’d stamp high probability. Granted, by entering long here you are effectively also buying on the round number 1.4700, which, as you can probably see, is neatly tucked deep within a daily demand area – fantastic! Now switch over to the weekly scale, not so fantastic - strong downtrend, resistive pressure being seen from a weekly Quasimodo (see above), and this is before we even consider the resistance that may form from the recently broken 4hr demand area just above it at 1.4721-1.4767! With this in mind, there will be no buying seen from our desks today.
With regards to selling, our team has come to a general consensus that shorts will only be permitted when/if price consumes the aforementioned daily demand area. That way, we can be pretty confident the down trend on this pair is likely to resume.
Current buy/sell orders:
• Buy orders: Flat (Predicative stop-loss orders seen at: N/A).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).