ICmarkets
Short

Very clear price action on the GBP, Anyone seeing different?

FX:GBPUSD   British Pound/U.S. Dollar
724 7 9
Weekly view – The weekly timeframe shows that the GBP has now connected with a weekly supply barrier coming in at 1.5824-1.5634.

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 supply zone will likely be taken out, and price will likely touch gloves with the daily resistance area 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 Harmonic 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 Harmonic 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).


FX-Error
a year ago
Nice Analysis ...
I Like it a lot ....!!
Reply
julius.tsui
a year ago
good for newbie like me :) many thanks
Reply
Hey IC, I'm hunting this level too. With FOMC just around the corner, would you be looking for a shooting star up past the 4h supply before considering shorting. If not how would you manage the risk of a stop run, past 4H supply?
Reply
ICmarkets PRO Cryptoelite
a year ago
Hi guys,

Glad you're finding the analysis useful. Skuffone, the only way we know how to manage the risk is by waiting for lower timeframe confirming price action. This usually allows for such a fakeout.

IC markets
Reply
dionvuletich
a year ago
Gonna get rocky later tonight with FOMC! 40pip risk during a major USD Interest rate FOMC meeting is not much of a buffer..
Reply
ICmarkets PRO dionvuletich
a year ago
Totally agree! Too bad, this is why we always wait for price to confirm itself rather than jumping in.
Reply
Evgeny00 PRO ICmarkets
a year ago
when it's too evident, trade the opposite
Reply
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