In that price is lurking just below psychological resistance 1.5500 and supply just above it at 1.5528-1.5510, let’s take a peek at what this recent surge of buying looks like on the bigger picture. Up on the weekly chart, it is clear to see that price is now firmly trading within the jaws of a supply drawn from 1.5658-1.5425. Meanwhile, down on the , Cable is now flirting with the underside of a swap resistance barrier given at 1.5484.
Consequent to this, the weekly, daily and 4hr timeframes are either crossing swords with some form of resistance, or hovering very close. That being the case, our team currently has their eye on the aforementioned 4hr , since it not only converges with the above said higher timeframe areas, but also boasts an alternate correction point within. We have placed a pending sell at 1.5506, with a small stop above at 1.5534. Should the order get filled and move in our favor, we’ll be eyeing 1.5400 as our first take-profit zone.
In the event we get taken out of this trade and price closes higher, our team will then be watching to see if price advances to connect with a Bat completion point sitting around psychological resistance 1.5600.
Levels to watch/ live orders:
• Buys: Flat (Stop loss: N/A).
• Sells: 1.5506 (Stop loss: 1.5534) 1.5600 Tentative – confirmation required (Stop loss: dependent on where one confirms this level).