The currency pair was able to take advantage of oversold, which would recover slightly from the pressure of sellers.
Despite the fact that the currency pair overcame important resistance at 1.2250, it did not last long to keep above, and bull attempts were limited to 1.2300, after which active sales began.
The movement structure demonstrates that the currency pair begins to decline along a similar trajectory of the past downtrend.
The result of the week: An increase of 0.53% or +65 points.
H1 (Technical) -H4 (indicative)
The pound continues to be in a global downtrend and locally the pair is also showing a downward trend. The pair clearly senses the upper boundary of the trend.
Now it has formed some stable zone at the level of 1.2160, from where the currency pair can again try the upper limit for strength.
= ≥ Conclusion: A breakthrough of this line will direct the pair to 1.2100 and in case of breaking it up to 1.2000.
If the trajectory of movement remains the target for this movement - 1.1925.
Indicative analysis provides the following information:
Lack of oversold assets on 1-hour and 4-hour time frames (located in the neutral zone).
2. The price behavior indicator shows that the price has normalized with respect to its average 4-day trend (neutral zone).
=> The most likely scenario for a currency pair is movement to 1.2100 - 1.2000.
However, if the currency pair still manages to gain a foothold above 1.2250, the currency pair will be able to grow to 1.2350.
• Volatility: Weekly = 103 points // Monthly = 136 points // Quarterly = 130 points.
• Trends: Continuation of the downtrend, the 55 - day average is below 100 - day and 200 - day.
• Range Ratio: 223 points (Growth from 367 points).
We recommend sales this week, with a local stop at 1.2250.
Sales are interesting in the breakdown of the 1.2160, or from the zone 1.2180-1.2190.
Regards to subscribers,
Wermelgion & Partners Invest.
Profitability of WMCI Asset Management Fund + 14.43% for May;
Profitability of HMS Royal Oak + 14.53% for May;
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