GBPUSD: The Week Ahead (Day 4)

FX:GBPUSD   British Pound/U.S. Dollar
Yesterday’s news gave us a lot of continued strength in the GBP blowing right past previous structure without a pause it seems. So the question is what’s next? Well going off of the basic price action principles of higher high, higher close, I’m expecting the bullish move to continue. The next stopping point that I have on my radar is around 1.6200 even handle where we have a cluster of Fibonacci extensions, retracements & inversions along with some minor structure (looking far left). Technically the “killzone” is a lot wider than that, but that would be the first area that would cause me to place close attention. Our harmonic move ( ab=cd ) is towards the higher end of that zone, but if you look left on the screen or zoom out to the weekly, you’ll see we have some pretty decent previous structure throughout

Although we’re still a few hundred pips away from that level it’s important that I make that prediction as it’s part of the Identify, Predict, Decide, Execute (IPDE) process that I go through when evaluating every price chart. Now that I’ve predicted where I think the market is going, the next question that I want to ask myself is “how is the market going to get there?” Well, there are two ways, 1) we’ll shoot straight up, or 2) the market will show some relief and we’ll get a retracement back into previous structure.

IF the market retraces THEN I’ll be looking for opportunities to hop on the bullish move.
I appreciate all of the kind feedback on this “Weekly Follow” idea that I’ve been trying out this week. It’s been pretty fun to do, and we all need some fun in this stressful field we work in. I’ll see many of you guys in my Live Room in an hour or so, and for the rest of you, it’s Thursday, so that means be on the lookout for my weekly “Weekend Review” video https://www.youtube.com/playlist?list=PL3pkGkL2zWpHt7X4ZeT0w0n6hk0C8Lwx1

Akil Stokes
Chief Currency Analyst at http://www.tradeempowered.com