In Friday's analysis (24th Jan), I discussed about the potential false break (probe) at 1.37 key daily resistance zone, which was exactly what the market performed. Assessing the current market condition of GU, repeatedly every impulse will follow by deep retracement (0.5 - 0.886 fib). Personally, will be looking for long-term buying opportunities with 200ema & static support zones as the area of value. On both 11th & 21th Dec 2020, price breached through the 200ema followed by strong bullish reversal. There are two zones that I am currently looking at for potential bullish continuation setup,
1. 1.3540 support zone 2. 1.3480 support zone
We could expect some short-term bearish sentiment in the market. However, If price begin showing sign of upwards breakout of 1.37 resistance zone during tomorrow's session, further bullish momentum can be seen, do not forget the overall trend on the higher timeframe remains bullish. Will keep it updated in the following trading week.
Trade safe.
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Hi , Thanks for your analyses . It is really helpful. Do you think it could try to breakout the support zone 1 - 1.3540 in the first trading session before FTSE open as most of the time London session always show bullish momentum.
TraderNeoh
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@amufiuk, I do not think Asia session has the momentum to breach 1.3540.
amufiuk
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@TraderNeoh, Thanks for your update , yes the momentum still looking for upside . Do you think it could break the Friday high above 1.37450?
TraderNeoh
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@amufiuk, Short-term bearish sentiment is expected.
THANKS FOR YOUR ANALYSIS I ASSUME THAT THE STRENGTHENING OF THE USD following the arrival of the Biben and on the other hand the covid crisis in england favors the decrease of the curve
If it hits Support Zone #1, then it will go past a another Support Zone, chances are that when it has broke through
that Zone, it will most likely go up again and re-test the broken Zone. Don't let this fool you as a Reversal unless it
actually does break it again.
You really help me with my trading Neoh! Thanks, I'll keep checking you out!