If you followed me on Twitter you already know I was calling for some profit taking on long GBPUSD (opened at 1,5200 +/- area) as I see possible slow down in recent bullish momentum.
Weekly: - Ichimoku picture turned to neutral with some bullish bias. However Price is reaching a strong resistance zone: ard 1,5880 we have 100 WMA and future Senkou B line (orange), and above current Price we have the Kumo ard 1,60 +/- - Heikin Ashi is setup is still strong bullish.
Daily: - Ichimoku setup is bullish, with Tenkan/Kijun strong bullish cross confirming the trend last week. Price reached a higher high three days ago. - Heikin Ashi signals some starting momentum loss in bullish price action. Last two candles could not make a higher high and have inside body. Bodies are still green. haDelat turns lower. We'll possibly see some sideaway move or a pull back towards Kijun Sen in coming days.
I think it is time to take profit on longs and look for a better entry level after price retraces to supports. Bullish support zone is 1,5520-1,5620, there we can start to look for new Heikin Ashi buy signals.
p.s.: I closed all my longs with highest partial sell at 1,5900 p.s.2.: On the daily chart there might be some calculation mistake in Heikin Ashi candle today. The candle's opening level shd be lower, exactly at the body mid point of the previous candle. This causes some visual distortion now.
Comments
IvanLabrie
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Hi, excellent long entry!
I think it'll correct a bit but heading ultimately higher:
Kumowizard
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I agree. as always, it is again about probabilities: when, where, how much, for how long, etc.? I am a trend trader, but also a swing trader, which means that I try to enter trades in direction of the trend, try not to go counter trend too much and too often, but when I see some decreasing power and momentum, then I reduce my positions.
I think it'll correct a bit but heading ultimately higher: