The higher-timeframe picture resembles the following:
Weekly TF: Serious weakness is being presented within the weekly demand area at 1.64589-1.66339. A break below here could very well open the gates for a challenge of the weekly R/S flip level support at 1.62591.
Daily TF: Daily demand at 1.64589-1.64949 is seeing some action, as sellers slammed price into the area with a full-bodied candle. As per this timeframe, if price successfully breaks below this daily demand area, we would be then looking for buy opportunities around the daily demand area at 1.62510-1.63401 (neatly placed just above the weekly R/S flip at 1.62591.
Very similar to Gold on the 4hr timeframe, it appears the pound has taken a nose dive off of the top diving board! Buyers stood no chance with the recent selling onslaught seen. Buyers around the round number 1.65, and the 4hr decision-point level at 1.64895 have very likely been consumed – stopped out (including us).
The overall trend direction on this timeframe is clearly south, and with weakness being seen within weekly demand (levels above) at the moment, we have to be cautious when attempting to buy! The next area of interest that has taken our fancy is the 4hr decision-point area at 1.64246-1.64520 (a P.A confirmation buy level has been set just above at 1.64571). Assuming buyers come into the market around this area, it’s very possible active sellers are lurking just above at the round number 1.65, so for any traders considering going long here, it may pay to remain aware of this.
Pending orders/P.A confirmation levels:
• The pending buy order (Green line) set just above a 4hr decision-point level (1.64895) at 1.64944 has been stopped out.
• New P.A confirmation buy levels (Red line) are seen just above a 4hr decision-point area (1.64246-1.64520) at 1.64571. We remained cautious with this one, since the trend is predominantly south at the moment, and weakness is being seen within weekly demand at 1.64589-1.66339, hence the need for confirmation.
• No pending sell orders (Green line) are seen in the current market environment.
• No P.A confirmation sell levels (Red line) are seen in the current market environment.
• Areas to watch for buy orders: P.O: No pending sell orders are seen in the current market environment. P.A.C: 1.64571 (SL: Dependent on price action after the level has been confirmed TP: Dependent on approaching price action after the level has been confirmed).
• Areas to watch for sell orders: P.O: No pending sell orders are seen in the current market environment. P.A.C: No P.A confirmation sell levels are seen in the current market environment.