MarcPMarkets

GBPUSD: Range Low Offers Potentail Long On Horizon?

OANDA:GBPUSD   British Pound / U.S. Dollar
GBPUSD             update: Price has broken below the nearest reversal zone boundary at 1.3988 and closed weak. It has also shifted the bullish trend line which means it is best to avoid this market until it stabilizes in the near term.

Trend lines serve as a visual guide for potential reversal levels in the future. When a trend line is broken and needs to be adjusted, it can be confusing. Is it a trend change? In this case, no, it is indicating that the broader bullish momentum is slowing (as slope becomes more horizontal). In order for this trend line to offer any value, price needs to establish a reversal off of it now, and then any retest in the future is what we want to watch closely for a higher probability setup.

The key level that is in play now is the 1.3551 reversal zone boundary. This level represents the extreme range low and if a reversal pattern can materialize in this area, that would offer a high probability swing trade long scenario. It all depends on the price action.

As you can see, when price reached the 1.3988 area which offered potential, a reversal pattern could not materialize for a swing trade. This is why buying at a predetermined level is not enough to justify taking risk. The predetermined level must be accompanied with evidence that buyers are actively absorbing sell orders. This activity is expressed in particular candle patterns which is what we look for at S.C. in order to issue a signal.

Many traders attempt to interpret fundamentals when it comes to the forex market. There is nothing wrong with that if you are into that sort of thing, but through TA I am able to arrive at the same conclusion, often faster, without having to pretend to have a PHD in macro economics. Price discounts all known information in the world at the present time which means the fundamentals are often reflected in the price action and why chart analysis offers substantial value, especially on the short term.

As this market attempts to push its range low of 1.3712, we will be watching for reversal patterns that have the potential to offer a trade scenario that can see price retest the 1.4100 area which is the middle of the range. Check for updates and longer time frame Elliott Wave counts on S.C.
Marc Principato, CMT |Author: Analyze Any Financial Market Like The Pros Using Price Action| http://www.Priceactiontraders.net | Cofounder http://www.seekingcryptos.com (S.C.)





There will probably be a small window of opportunity to get some dollar shorts in this week, and I will definitely be looking to play them, gbpusd included. with that said, does this look like a chart you wanna be long for an extended period of time? to me, it certainly doesn't.

Reply
through TA I am able to arrive at the same conclusion, often faster, without having to pretend to have a PHD in macro economics. Price discounts all known information in the world at the present time which means the fundamentals are often reflected in the price action and why chart analysis offers substantial value, especially on the short term.

Really ? So exactly when and how long has it taken you take actually give a trade recommendation on Bitcoin then? Just asking.

For more experienced traders who prefer to trade Bitcoin than read about it

+1 Reply
goldbug1 sumastardon
@sumastardon, you have no class and have no credibility. Experienced traders do NOT follow you because you are simply a TROLL!!! Move on amateur.
Reply
@goldbug1, lol well he's right though...a lot of these top guys talk a good one but they don't do what they're supposed to do: call shots. yeah, sumastardon can be a bit abrasive and posts his charts everywhere, but he's not wrong. I mean, this guy Marc, when he writes all his fancy paragraphs, my goodness, what a smart guy...he really knows the lingo and can talk the talk...but I always seem to miss his conclusion in all that talk somehow...
Reply
goldbug1 NicolasBourbaki
@NicolasBourbaki, He has called two trades on bitcoin and one on ethereum in the past 10 days. All hit targets.
Reply
@goldbug1, Agree
Reply
@goldbug1, Surely no experienced traders follow you either after a month a or so? Am simply offering those few who do still visit these pages an alternative trading strategy that works quite well and makes a lot of points too. and as for being 'amateur' have been doing this 31 years, am retired and made a lot of money using this simple system of trading breaks. Am trying to give something back is all - to those who are diligent enough to find it and have enquiring minds enough to read it. It's a useful filter that helps to separate wheat from chaff. So yes, you finally got something right Mark. Well done you.
Reply
acostalugo85 sumastardon
@sumastardon, mate, please go troll to a bitcoin post, this is Cable, not Bitcoin.
Reply
Thanks Marc, very interesting, currently shorting this market, looking at targets of the fib levels below, not expecting the bears to hold beyond 1.3515 38.2 Fib. Unless Mark Carney misses his morning coffee and decides to tell the price he’s unhappy again.
Reply
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
HE עברית
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out