Weekly Timeframe: There is clearly not much interest in selling the pound at the moment, since price has literally ignored the weekly resistance flip level at 1.62591, and now appears to be trading towards a weekly decision-point area at 1.66429-1.65340.
Daily timeframe: The daily timeframe shows price is currently trading around a daily demand flip area at 1.64589-1.64949, if selling interest comes into the market here, there is very little in our opinion stopping price from trading down to the daily decision-point level at 1.62686. Conversely, a break above would likely attract further buying up to around a daily decision-point area seen at 1.66429-1.66057 (located deep within the weekly decision-point area mentioned above).
4hr Timeframe: On the 4hr timeframe, price is currently trading around where the decision (1.64639-1.64385) was made to consume daily demand at 1.64589-1.64949, making this a very important area indeed. Be that as it may, price is too close to near-term resistance (1.64) to justify entering short here from a risk/reward perspective. With that being said, if a break below the 1.63876 level is seen, we would definitely consider entering short. A break above this 4hr decision-point area, could likely force price to hit the 1.65 round-number level.
However, taking into consideration all of the above, we mustn’t forget that the weekly timeframe is showing room to move higher at least to the weekly decision-point area at 1.66429-1.65340, so do bear this in mind before clicking the sell button.
Pending orders/Price action confirmation levels:
• Areas to watch for buy orders: Pending orders: No pending buy orders are seen in the current market environment. Price action confirmation levels: No price action confirmation buy levels are seen in the current market environment.
• Areas to watch for sell orders: Pending orders: No pending sell orders are seen in the current market environment. Price action confirmation levels: No price action confirmation sell levels are seen in the current market environment.
Daily timeframe: The daily timeframe shows price is currently trading around a daily demand flip area at 1.64589-1.64949, if selling interest comes into the market here, there is very little in our opinion stopping price from trading down to the daily decision-point level at 1.62686. Conversely, a break above would likely attract further buying up to around a daily decision-point area seen at 1.66429-1.66057 (located deep within the weekly decision-point area mentioned above).
4hr Timeframe: On the 4hr timeframe, price is currently trading around where the decision (1.64639-1.64385) was made to consume daily demand at 1.64589-1.64949, making this a very important area indeed. Be that as it may, price is too close to near-term resistance (1.64) to justify entering short here from a risk/reward perspective. With that being said, if a break below the 1.63876 level is seen, we would definitely consider entering short. A break above this 4hr decision-point area, could likely force price to hit the 1.65 round-number level.
However, taking into consideration all of the above, we mustn’t forget that the weekly timeframe is showing room to move higher at least to the weekly decision-point area at 1.66429-1.65340, so do bear this in mind before clicking the sell button.
Pending orders/Price action confirmation levels:
• Areas to watch for buy orders: Pending orders: No pending buy orders are seen in the current market environment. Price action confirmation levels: No price action confirmation buy levels are seen in the current market environment.
• Areas to watch for sell orders: Pending orders: No pending sell orders are seen in the current market environment. Price action confirmation levels: No price action confirmation sell levels are seen in the current market environment.
IC Markets is an online forex broker specialized in providing transparent trading solutions to both retail and institutional investors alike. We provide superior execution technology, lower spreads and unrivaled liquidity.