Hello Traders,
Here is the Top-Down Analysis of GBPUSD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 49 - Dec 01
M > Market is respecting downward trend-line as resistance. Price is also testing monthly resistance again. Placing Fib on last monthly bullish impulse we can expect correction till 0.382 or 0.5 Fib level.
W > Target of 0.382 and 0.5 Fib level will coincide with weekly supply zone, which will now turn demand zone. We can see bearish divergence.
D > Price dropped to make a LH after testing monthly resistance, however it has not made next HH yet. A failure to make HH will provide a reversal sign.
As per COT GBP added major Long and few Short, slightly improving net positions, N-R have also added major Long but closed few Short positions, improving cumulative net positions. BXY gained strength during the said period however after further gaining strength last week it closed on a weak note. Institutions have been closing Long since August and increasing their portfolio of Short, about 10K Short added in last month. Hence weak GBP can be expected in long term.
4H > Price has been consolidating it current level for past one week but has not been able to break last LH yet. Its break to the downside with creation of LL will provide reversal confirmation. A pull back after creation of LL will provide a nice Short entry with good risk to reward ratio.
Pair Correlation > GBPUSD has positive correlation with NZDUSD, NZDJPY, GBPJPY, GBPCHF and EURUSD and negative correlation with EURGBP.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX
Here is the Top-Down Analysis of GBPUSD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 49 - Dec 01
M > Market is respecting downward trend-line as resistance. Price is also testing monthly resistance again. Placing Fib on last monthly bullish impulse we can expect correction till 0.382 or 0.5 Fib level.
W > Target of 0.382 and 0.5 Fib level will coincide with weekly supply zone, which will now turn demand zone. We can see bearish divergence.
D > Price dropped to make a LH after testing monthly resistance, however it has not made next HH yet. A failure to make HH will provide a reversal sign.
As per COT GBP added major Long and few Short, slightly improving net positions, N-R have also added major Long but closed few Short positions, improving cumulative net positions. BXY gained strength during the said period however after further gaining strength last week it closed on a weak note. Institutions have been closing Long since August and increasing their portfolio of Short, about 10K Short added in last month. Hence weak GBP can be expected in long term.
4H > Price has been consolidating it current level for past one week but has not been able to break last LH yet. Its break to the downside with creation of LL will provide reversal confirmation. A pull back after creation of LL will provide a nice Short entry with good risk to reward ratio.
Pair Correlation > GBPUSD has positive correlation with NZDUSD, NZDJPY, GBPJPY, GBPCHF and EURUSD and negative correlation with EURGBP.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX