A Happy New Year! Welcome 2023.
In 2022 Dec, GBPUSD did a strong surge from 1.200 to above 1.2400 (400 pips) but closed nearer to 1.2000 for the year. For first week of the new year, we start with long bias towards 1.2240 about 130 pips of potential range.
Tested 1.2970 several times. struggled to remain above 1.3080 and eventually above 1.3120. taking the view that price should find supporters to keep it above 1.3080. Bought at the lows of 1.3000, scaled from 1.3038 to 1.3065.
Assuming price is going to stuck within the last down swing from 1.3500 to 1.2960. I am looking at some move from current support level to above 1.3100, probably testing near highs of 1.3200 within this week. If price breaks point D, then it's likely a resume of the downtrend.
Let's see if this round the test of 1.1200 would hold. A push through 1.1260 should provide momentum towards 1.1300 and eventually trading above this level.
Review:
After Wednesday's up move, price stuck in a 40 pips range for 2 days. Friday, price did close near the high of the day. This likely set the stage for next week.
Trade:
Managed to build entries around 1.1240+, carried it over weekend as I still hold the view that EUR should move towards 1.1300, 1.1400.
Plan:
As price moves into the green zone, I would...
#EURUSD struggled last week (2019 W08). Still having a bullish view unless 1.1315 cannot hold. Above 1.1370 should provide momentum towards 1.1450 and 1.1500
Lots of negatives for the Euro zone, last week price has tested 1.1270 several times, Friday closed with a nice pin bar. A nice clear of 1.1315 should presents opportunities towards 1.1370. From a bigger picture, EURUSD created a nice up flow from 12th Nov to 10 Jan this year, and has corrected with an ABCD pattern (provided 1.1270 is the D point).
