The cable settled above its 50 SMA line after a volatile week.
The rate hike talks cause increased intra-day volatility as we approach decision date and as long as the trading channel you see in the chart remains valid, I see bullish potential in $GBPUSD.
The question is where will the price rally from?
Will it rally from the 50 SMA line towards the bearish AB=-CD and Bat completion zone - Near 1.58?
Or will it decline before that, to complete a bullish Gartley on the 200 SMA line and the 1.53 support zone?
These are the two harmonic scenarios I'll monitor over the coming days/weeks.
There are plenty of ways to trade these scenarios. One example is to take the bearish Aggressive C entry for the blue bullish Gartley, which means selling as long as the price remains below 1.565 with anticipation that the price will decline all the way down to complete the pattern.. That's one way.
How will you trade it?
Read the full analysis and more interesting trading ideas for stocks and FX in this week's WMA newsletter:
goo.gl/SLSwmk
Become an Elite Zone member:
www.themarketzone.net/
Subscribe to the newsletter (free):
www.themarketzone.net/
The rate hike talks cause increased intra-day volatility as we approach decision date and as long as the trading channel you see in the chart remains valid, I see bullish potential in $GBPUSD.
The question is where will the price rally from?
Will it rally from the 50 SMA line towards the bearish AB=-CD and Bat completion zone - Near 1.58?
Or will it decline before that, to complete a bullish Gartley on the 200 SMA line and the 1.53 support zone?
These are the two harmonic scenarios I'll monitor over the coming days/weeks.
There are plenty of ways to trade these scenarios. One example is to take the bearish Aggressive C entry for the blue bullish Gartley, which means selling as long as the price remains below 1.565 with anticipation that the price will decline all the way down to complete the pattern.. That's one way.
How will you trade it?
Read the full analysis and more interesting trading ideas for stocks and FX in this week's WMA newsletter:
goo.gl/SLSwmk
Become an Elite Zone member:
www.themarketzone.net/
Subscribe to the newsletter (free):
www.themarketzone.net/