Week 51 continued its upward expectation that we had in week 50's analysis. It reached a bullish level 2, and largely confined itself to a limited range of about 80 pips between its weekly high and low. If you long, you will be in profit for the first half of the week, similar to EURUSD . It was surprising to me that the break to level 2 was just a minor one. I was expecting about 50 to 80 pips break above the high of level 1. (The high and low of the zone can be seen at the box drawn)
That being said, as it was approaching the end of the year, the market usually gets choppy for a little while as a lot of traders are on holiday. Even though week 51 has moved itself to a bullish level 2 zone, there is something interesting that I spotted. If you look at the zone, we can see multiple tries to retouch the high of level 2 zone. The attempt to retouch the high during the later part of week 51 was unsuccessful, it did not reach the high as compared to the first half of the week. That signaled me to be cautious in building up my position in GBPUSD in week 52. Even though I am in the view that we should continue to long, that failed attempts to retouch the high has made me wary of the strength of the bull trend.
Instead, the same can be said for the multiple touches, trying to retouch the low of level 2 zone which proved unsuccessful as well. However, because we have identified the trend as bullish , it is more of a red flag for not breaking the high, than not breaking the low. It is obvious too that the price is not ranging.
For week 52, we might witness false breakouts or a continuation of the bullish trend to level 3. I certainly hope to see an upward break of 50 to 80 pips upwards as I am holding long contracts.
If you have any thoughts on GBPUSD's movement for the coming weeks, please share them below, I look forward to learning and staying profitable together. Please help me like and follow me for my weekly updates!
That being said, as it was approaching the end of the year, the market usually gets choppy for a little while as a lot of traders are on holiday. Even though week 51 has moved itself to a bullish level 2 zone, there is something interesting that I spotted. If you look at the zone, we can see multiple tries to retouch the high of level 2 zone. The attempt to retouch the high during the later part of week 51 was unsuccessful, it did not reach the high as compared to the first half of the week. That signaled me to be cautious in building up my position in GBPUSD in week 52. Even though I am in the view that we should continue to long, that failed attempts to retouch the high has made me wary of the strength of the bull trend.
Instead, the same can be said for the multiple touches, trying to retouch the low of level 2 zone which proved unsuccessful as well. However, because we have identified the trend as bullish , it is more of a red flag for not breaking the high, than not breaking the low. It is obvious too that the price is not ranging.
For week 52, we might witness false breakouts or a continuation of the bullish trend to level 3. I certainly hope to see an upward break of 50 to 80 pips upwards as I am holding long contracts.
If you have any thoughts on GBPUSD's movement for the coming weeks, please share them below, I look forward to learning and staying profitable together. Please help me like and follow me for my weekly updates!
