Weekly Timeframe: For the past four weeks now price has been seen trading around a weekly demand area coming in at 1.58533-1.60157. As far as buying is concerned, we are a bit cautious as there has been very little ‘convincing’ interest shown by the buyers within these four weeks of trading. In fact, we would go as far to say that the GBP/USD looks a right mess on this timeframe at the moment! It will be interesting to see what the lower timeframes look like.
Daily Timeframe: The daily timeframe reveals exactly why we are a bit cautious about buying into this market. Price has been consolidating between a minor daily support flip level seen at 1.61609 and a combined daily demand/Quasimodo support area coming in at 1.58533-1.59914/1.58934 since the 03/10/2014 (located deep within the aforementioned weekly demand area). It is only until one of these areas is consumed; we will then have some idea on future direction. This however does not mean we cannot take small positions within this range on the lower timeframes though, as price has just reacted beautifully off of the aforementioned Quasimodo support level, and has room to trade to the upper limits of this daily range. Let’s take a look on the 4hr timeframe, and see what we can find.
4hr Timeframe: The 4hr timeframe is showing some very nice-looking price action within the downward trending channel (marked in pink) at the moment. As we can clearly see price did continue south towards a 4hr demand area at 1.58533-1.58915 (located deep both within the weekly and daily demand areas mentioned above), and as anticipated a bullish reaction has been seen. Well done to anyone who got long around the 1.58960 area!
In our opinion two things may happen now:
1. If price were to positively close above this channel, and retest 1.6 as support, we would be very interested in buying, ultimately targeting the 1.60871/1.61 area.
2. More selling could come into the market around current price (at the upper limit of the channel), and force this market back down to the aforementioned 4hr demand area, where we would patiently watch the lower timeframe price action for the next decision to be made.
Buy/sell levels:
• Buy orders: N/A (Predicative stop-loss orders seen at: N/A).
• Sell orders: N/A (Predicative stop-loss orders seen at: N/A).
Daily Timeframe: The daily timeframe reveals exactly why we are a bit cautious about buying into this market. Price has been consolidating between a minor daily support flip level seen at 1.61609 and a combined daily demand/Quasimodo support area coming in at 1.58533-1.59914/1.58934 since the 03/10/2014 (located deep within the aforementioned weekly demand area). It is only until one of these areas is consumed; we will then have some idea on future direction. This however does not mean we cannot take small positions within this range on the lower timeframes though, as price has just reacted beautifully off of the aforementioned Quasimodo support level, and has room to trade to the upper limits of this daily range. Let’s take a look on the 4hr timeframe, and see what we can find.
4hr Timeframe: The 4hr timeframe is showing some very nice-looking price action within the downward trending channel (marked in pink) at the moment. As we can clearly see price did continue south towards a 4hr demand area at 1.58533-1.58915 (located deep both within the weekly and daily demand areas mentioned above), and as anticipated a bullish reaction has been seen. Well done to anyone who got long around the 1.58960 area!
In our opinion two things may happen now:
1. If price were to positively close above this channel, and retest 1.6 as support, we would be very interested in buying, ultimately targeting the 1.60871/1.61 area.
2. More selling could come into the market around current price (at the upper limit of the channel), and force this market back down to the aforementioned 4hr demand area, where we would patiently watch the lower timeframe price action for the next decision to be made.
Buy/sell levels:
• Buy orders: N/A (Predicative stop-loss orders seen at: N/A).
• Sell orders: N/A (Predicative stop-loss orders seen at: N/A).
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