Hello Traders,
Here is the Top-Down Analysis of GBPUSD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 42 - 12 Oct
M > Price is respecting downward trend-line as resistance. It reached monthly resistance coinciding with the trend-line, got rejected and moved to the downside. We saw a W pattern, its neck also coincides with 0.618 Fib level on last bullish impulse, however price retraced to the upside failing to test the neck.
W > We saw an M formation and expected price to move up to test its neck and complete the pattern, this target also coincides with 0.618 Fib level on last bearish impulse.
D > Price is approaching our target and after testing the neck and completing the formation we expect it to drop. Our target will be neck of W formation i.e. 0.618 level.
As per COT GBP saw addition of Long and few Short positions improving net positions slightly but still in -ve, N-R saw closure of Long and addition of major Short, reducing cumulative net positions. Commercials saw closure of Long and Short, Short positions for them have reduced to least for current year. BXY improved for the said week and further enhanced its position last week.
We must note that in month of June and July made all upside move while having negative net positions, this ride was because of weak DXY and not strength of BXY. Hence we expect a realtime correction soon.
4H > Price is making HH and HL. Price has broken resistance level and now approaching our target. We can notice loss of momentum, however we will monitor price action for trend reversal.
Pair Correlation > GBPUSD has positive correlation with GBPJPY, NZDUSD and NZDJPY and negative correlation with USDCAD and EURGBP.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX
Here is the Top-Down Analysis of GBPUSD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 42 - 12 Oct
M > Price is respecting downward trend-line as resistance. It reached monthly resistance coinciding with the trend-line, got rejected and moved to the downside. We saw a W pattern, its neck also coincides with 0.618 Fib level on last bullish impulse, however price retraced to the upside failing to test the neck.
W > We saw an M formation and expected price to move up to test its neck and complete the pattern, this target also coincides with 0.618 Fib level on last bearish impulse.
D > Price is approaching our target and after testing the neck and completing the formation we expect it to drop. Our target will be neck of W formation i.e. 0.618 level.
As per COT GBP saw addition of Long and few Short positions improving net positions slightly but still in -ve, N-R saw closure of Long and addition of major Short, reducing cumulative net positions. Commercials saw closure of Long and Short, Short positions for them have reduced to least for current year. BXY improved for the said week and further enhanced its position last week.
We must note that in month of June and July made all upside move while having negative net positions, this ride was because of weak DXY and not strength of BXY. Hence we expect a realtime correction soon.
4H > Price is making HH and HL. Price has broken resistance level and now approaching our target. We can notice loss of momentum, however we will monitor price action for trend reversal.
Pair Correlation > GBPUSD has positive correlation with GBPJPY, NZDUSD and NZDJPY and negative correlation with USDCAD and EURGBP.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX