Daily view: Following the rebound seen from the daily swap zone seen at 1.5478-1.5435, price extended higher during yesterday’s session. This move drove the pound deeper into a daily supply area at 1.5698-1.5530 (located just below the aforementioned weekly supply area). Should further buying take place here, the current daily will likely be taken out, and price will likely touch gloves with the daily directly above at 1.5824-1.5734 (located deep within the aforementioned weekly supply area).
4hr view: From this angle, we can see that price is now lingering within a 4hr Bat reversal zone at 1.5626-1.5690, which, as you can see, coincides nicely with a very nice looking 4hr supply area at 1.5698-1.5661 (positioned deep within the aforementioned daily supply area). Given that we’re also seeing the GBP within supply on both the weekly and daily timeframes (see above) at the moment, our objective today is simple. Watch for lower timeframe selling confirmation within the 4hr completion zone. Should we find an entry here; the first trouble area so to speak will likely be around the 1.5600 handle.
Levels to watch/ live orders:
• Buys: Flat (Stop loss: N/A).
• Sells: 1.5626-1.5690 (Stop loss: dependent on where one confirms this area).