The higher-timeframe picture resembles the following:
• Sellers are showing much more interest within weekly supply at 1.76297-1.67702, could a move down to the weekly demand area at 1.66917-1.67939 be in order?
• A break below the minor daily S/R flip level at 1.70597 has been seen. Sellers appear to be pushing south at the moment with the next trouble area on this timeframe seen around the daily S/R flip level at 1.69712.
The pound is currently dancing around a VERY important round number level at 1.70000, we expect a little manipulation here from the big boys as they know (and we do) there are millions upon millions of orders just waiting to be triggered here, or stopped out.
If we see a reaction here, the path ahead is relatively clear. The two wicks marked with arrows resemble likely supply consumption meaning if we are indeed correct, price could shoot up to the next round number above at 1.71000 at the very least.
Pending/P.A confirmation orders:
• Pending buy orders (Green line) are seen just above the round number 1.70000 at 1.70058. A pending buy order has been placed here since a nice reaction will more than likely be seen at a big-figure level such as this. Our stop will be wide enough to cope with any deep tests, so we should see some profit from this trade if/when price reaches this level.
• No P.A confirmation buy orders (Red line) are seen in the current market environment.
• No pending sell orders (Green line) are seen in the current market environment.
• P.A confirmation sell orders (Red line) are seen just below the round number 1.72000 at 1.71943. We have placed a P.A confirmation sell order here simply because these psychological levels are prone to deep tests/spikes, so sometimes it is better to wait for that all important confirmation.
• Areas to watch for buy orders: P.O: 1.70058 (SL: 1.69446 TP: Dependent on price approach). P.A.C: No P.A confirmation buy orders are seen in the current market environment.
• Areas to watch for sell orders: P.O: No pending sell orders are seen in the current market environment. P.A.C: 1.71943 (SL: Dependent on price action after the level has been confirmed TP: Dependent on approaching price action after the level has been confirmed).