Surely this is a sell setting up. The only thing in question is when will it break and how far will it go. Of course it could go all the way to the bottom of the Daily channel but be aware that it could also be scribing out a ABC correction (see snapshot below) Either way I'm looking for a short trade initially then we'll watch what happens.
I'll update my analysis as price develops so remember to follow to receive them. You can also follow updates via twitter (link from my TV profile)
Always wait for an entry set up before risking your money.
This is not investment advice - it is purely for educational and discussion purposes. Your Ideas, comments and questions welcome
Good luck Steve
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Just be aware that although we are looking for a sell it may not go all the way to the bottom of the channel - we could simply get a correction like this and then a move long. Either way the short trade should produce some nice profit before we need to make a decision.
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A nice days work lol.
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Guys we've had a strong move down and now we need to consider what next. Will price move further down toward the channel bottom or will we see an ABC correction of the previous move up. I don't trade the news but naturally I am aware of it and it's potential effects on price movement. Given the UK election result the changes of a "hard" Brexit are greatly reduced which should please the market once the news sinks in. Therefore be aware that there is a high possibility that we'll get something more like the idea I've posted below. I've taken a very nice profit form this and I'm now waiting to see what happens next.
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Looks like my ABC theory is playing out. I'll be looking for a short trade soon.
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Ok we've had the completion of B and now price is pushing back down toward C. Price will possibly push the end of A and go long but we'll worry about that when we get there.
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Looks like I moved B to soon. It's now looking very similar to my first idea
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Ranothil
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Wow, that ABC theory. awesome dude, i'd love to know how you made that call. I remember seeing it and thinking we won't get that retracement, and then wow just like you said.
i just think c correction was small at daily chart . it should be able to go 1 more . but who knows
British people decided to continue brexit . this mean we are going to see weakness in GBP in next several month and it is confirming the big rush to down .
but there is still a chance that no parties in british help active government to move forward brexit and it will give us a small rush to up side .
we should stay and see the incoming news at next week .
SteveNixon
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@mehdisdt, I agree with the idea that price is more likely to go down than up (in the short term) but I just want to point out the possibility of a bounce back up. The importance of the election result is that the Conservatives wanted a strong mandate for hard Brexit which they did not get. That opens up the possibility for a much softer Brexit which is much favoured by business. Since most of the drop in the value of the pound was down to the fears Brexit would have on the UK economy then the potential softer approach could see the pound recover some more.