Good morning traders, welcome to a new trading week! Today is a Bank Holiday in the UK so I will not be trading the London session due to a lack of liquidity and higher spreads.
However, I have marked out exactly what I would like to see in the NY session with the assistance of the PMI data release at 15:00 GMT +1.
If we can locate sells at the main supply, we could ride the wave down as shown in the monthly cycle post above.
Friday was a weak buying day for GBPUSD, I interpret this as sellers not taking profits and still holding on to their swing sells which in could result in more downside to begin the week.
From a psychological standpoint, Monday tends to be the day where losing traders from last week jump in and try again because they have had the weekend to forget their poor decisions.
For this reason, I will only be looking for sells today, avoid the herd mentality and trade into their stop losses.