Good afternoon, dear reader!
Last week comment:
The pound was down all trading week. This negative was associated with difficult negotiations on the transition period, unfavorable macro statistics, as well as the comments of one of the members of the Bank of England that, if necessary, the regulator is ready to accept negative interest rates and increase the QE program.
The results of the week: A decrease of 2.47% or -306 points.
Technical analysis:
H1 (Technical) -H4 (indicative)
Despite the fact that the asset is located in 2 downstream channels - global and local, our analysts believe that the currency pair quite easily passed the important support zone 1.2250 and the couple will try to retest.
Hence, seller pressure is likely to continue the bearish trend. But at the moment, further movement seems excessive and even unjustified, in the light of future macro-economic data.
Indicative analysis provides the following information:
High overselling of the asset on 1-hour and 4-hour time frames (the Asset is located in the potential purchase area).
The price behavior indicator shows that the bears are overdoing and further movement seems unjustified.
=> The most likely scenario, excluding force majeure, involves the correction of a currency pair:
a) Correction may be limited to the zone - 1.2190;
b) If the zone - 1.2190 can not restrain profit taking, then the next zone will be - 1.2250;
c) If the output data is much worse than forecasts, we will continue the downward movement to 1.2000.
Global Variables:
• Volatility: Weekly = 113 points // Monthly = 142 points // Quarterly = 131 points.
• Trends: Continuation of the downtrend, the 55 - day average is below 100 - day and 200 - day.
• Range Ratio: 364 points (Growth from 202 points).
Recommendations:
We recommend neat purchases this week, with a local stop at 1.2070-1.2050
But as soon as the price reaches the necessary levels, we will strive to open short positions.
Regards to subscribers,
Wermelgion & Partners Invest.
Profitability of WMCI Asset Management Fund + 10.93% for May;
Profitability of HMS Royal Oak + 14.53% for May;
!Attention: Trading financial instruments and (or) cryptocurrencies is fraught with high risks, including the risk of losing part or all of the investment, therefore it is not suitable for all investors. Cryptocurrency prices are extremely volatile and can change due to external factors such as financial news, legislative decisions or political events. Margin trading leads to increased financial risks.
Ltd ”Wermelgion and Partners Investment” and any provider of the data contained on this website disclaim liability for any loss or loss incurred as a result of trading transactions made with reference to the information provided.
Last week comment:
The pound was down all trading week. This negative was associated with difficult negotiations on the transition period, unfavorable macro statistics, as well as the comments of one of the members of the Bank of England that, if necessary, the regulator is ready to accept negative interest rates and increase the QE program.
The results of the week: A decrease of 2.47% or -306 points.
Technical analysis:
H1 (Technical) -H4 (indicative)
Despite the fact that the asset is located in 2 downstream channels - global and local, our analysts believe that the currency pair quite easily passed the important support zone 1.2250 and the couple will try to retest.
Hence, seller pressure is likely to continue the bearish trend. But at the moment, further movement seems excessive and even unjustified, in the light of future macro-economic data.
Indicative analysis provides the following information:
High overselling of the asset on 1-hour and 4-hour time frames (the Asset is located in the potential purchase area).
The price behavior indicator shows that the bears are overdoing and further movement seems unjustified.
=> The most likely scenario, excluding force majeure, involves the correction of a currency pair:
a) Correction may be limited to the zone - 1.2190;
b) If the zone - 1.2190 can not restrain profit taking, then the next zone will be - 1.2250;
c) If the output data is much worse than forecasts, we will continue the downward movement to 1.2000.
Global Variables:
• Volatility: Weekly = 113 points // Monthly = 142 points // Quarterly = 131 points.
• Trends: Continuation of the downtrend, the 55 - day average is below 100 - day and 200 - day.
• Range Ratio: 364 points (Growth from 202 points).
Recommendations:
We recommend neat purchases this week, with a local stop at 1.2070-1.2050
But as soon as the price reaches the necessary levels, we will strive to open short positions.
Regards to subscribers,
Wermelgion & Partners Invest.
Profitability of WMCI Asset Management Fund + 10.93% for May;
Profitability of HMS Royal Oak + 14.53% for May;
!Attention: Trading financial instruments and (or) cryptocurrencies is fraught with high risks, including the risk of losing part or all of the investment, therefore it is not suitable for all investors. Cryptocurrency prices are extremely volatile and can change due to external factors such as financial news, legislative decisions or political events. Margin trading leads to increased financial risks.
Ltd ”Wermelgion and Partners Investment” and any provider of the data contained on this website disclaim liability for any loss or loss incurred as a result of trading transactions made with reference to the information provided.
