ICmarkets

GBP/USD: Weekly technical outlook and review.

FX:GBPUSD   British Pound/U.S. Dollar
85 0 0
Weekly TF.

The sellers have begun to show some serious interest within weekly supply at 1.76297-1.67702, if this selling continues this week, we could very well be seeing price hit weekly demand below at 1.66917-1.67939.

Daily TF.

Last week, price closed at 1.69705 which is around a daily S/R flip level at 1.69712. If a bullish reaction is seen there, a move up to the previous daily S/R flip level at 1.70597 could well be seen. We favor a break south here due to what the weekly timeframe has told us. A break south could very well see prices dropping down to around the daily demand area at 1.67989-1.67367 where likely buy orders are waiting.

4hr TF.

A drop below the round number 1.7 was seen last week; this no doubt upset millions of traders who were long around that area, including us!

A bullish reaction was seen around the 4hr demand area at 1.69512-1.69708, which consequently has trapped price between the aforementioned round number and this 4hr demand area. From the weekly timeframe , the sellers are on fire which could likely carry on this week, however on the daily timeframe we are now trading around a daily S/R flip level support at 1.69712 giving confluence to the aforementioned 4hr demand area.

If we a break lower, which is what we are favoring at the moment, a decline in price could be seen down to at least the round number 1.69. The reason for this is the tail marked with an arrow; this tail has likely consumed the majority of the buy orders around that area, thus possibly clearing the path for the sellers down to the round number level just mentioned.

Pending/P.A confirmation orders:

• The pending buy order (Green line) set just above the round number 1.70000 at 1.70058 has been stopped out.
• New P.A confirmation buy orders (Red line) are seen just above the round number 1.69000 at 1.69055. The reasoning behind setting this order is because we have no logical area on this timeframe for a stop-loss.

• New pending sell orders (Green line) are seen just below the round number 1.71000 at 1.70948. We have set a pending sell order here due to the fact we can place our stop just above the high 1.71167.
• P.A confirmation sell orders (Red line) are seen just below the round number 1.72000 at 1.71943. We have placed a P.A confirmation sell order here simply because these psychological levels are prone to deep tests/spikes, so sometimes it is better to wait for that all important confirmation.

• Areas to watch for buy orders: P.O: No pending buy orders are seen in the current market environment. P.A.C: 1.69055 (SL: Dependent on price action after the level has been confirmed TP: Dependent on approaching price action after the level has been confirmed).

• Areas to watch for sell orders: P.O: 1.70948 (SL 1.71211 TP: Dependent on price approach). P.A.C: 1.71943 (SL: Dependent on price action after the level has been confirmed TP: Dependent on approaching price action after the level has been confirmed).

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