Daily Timeframe: The situation on the shows that cable closed the week attacking a daily demand area at 1.4987-1.5061 (sits beautifully on top of the aforementioned weekly Quasimodo ). This area, as far as we can see, is the last line of defense for the weekly Quasimodo . Should this barrier be consumed this week, we can then likely expect the GBP to decline in value down towards a strong-looking daily demand area coming in at 1.4812-1.4949.
4hr Timeframe: From the 4hr timeframe, we can see price was driven south into a clean-looking 4hr demand area coming in at 1.4987-1.5020 (encapsulates the major round number 1.5000) , which, if you look back to the , you’ll notice that it’s located deep within the daily demand area mentioned above at 1.4987-1.5061.
Very similar the Euro , The GBP is also in a clear downtrend at the moment. However, we cannot ignore the fact that price is trading around very obvious demand from the weekly down to the 4hr timeframe (see above), which, incidentally, is where we believe price will likely try to stabilize itself today from the recent sell off seen on Friday. That being the case, we’re going to be watching price action very closely today around the aforementioned 4hr demand area. In the event that we see a signal to enter long, we’ll look to ride this baby up to the 1.5100 handle where we plan to take partial profits and move our stop to breakeven.
On the flip side, if this 4hr demand area fails to hold, we’ll then shift our attention to a small, almost hidden, 4hr Quasimodo seen just below at 1.4970 (located just below daily demand at 1.4987-1.5061). This could provide pro money with a fantastic barrier in which to fake price below to – one can only imagine the amount of stops located just below 1.5000 and this 4hr demand area!!
Current buy/sell orders:
• Buy orders: watching for lower timeframe confirmation round 4hr demand 1.4987-1.5020 (Predicative stop-loss orders are seen at: 1.4982).
• Sell orders: Flat (Predicative stop-loss orders are seen at: N/A).