Analysis of the Pound sell-off
Updated
As Brexit uncertainty looms and the British economy is put under more and more pressure, we can see the possibility of the Cable returning to its all-time low @ around 1.20000 (a drop of 800(0) pips from it's current location).
It differs from the uptrend of 2017 in that the bull and bear fights are a lot shorter-lived as short-termism becomes a factor in the new market. This means that shorter, larger trades will be much more profitable until the end of the year.
Recently the pair broke the trend support and this could possibly mean that a new channel will form - only a lot steeper, meaning a quicker downfall of the Pound.
Key levels are as follows:
A good entry point would be at the new resistance with the stop loss being at the maximum retracement and final TP at absolute support. The R-R ratio of the total trade is around 3.5.
Many updates incoming.
It differs from the uptrend of 2017 in that the bull and bear fights are a lot shorter-lived as short-termism becomes a factor in the new market. This means that shorter, larger trades will be much more profitable until the end of the year.
Recently the pair broke the trend support and this could possibly mean that a new channel will form - only a lot steeper, meaning a quicker downfall of the Pound.
Key levels are as follows:
- New resistance - 1.30500
- Absolute support - 1.20000
- Maximum retracement - 1.33500
A good entry point would be at the new resistance with the stop loss being at the maximum retracement and final TP at absolute support. The R-R ratio of the total trade is around 3.5.
Many updates incoming.
Note
Channel/resistance break, new resistance @ 1.130000 OR 1.130500.
Note
Secondary channel's resistance broken through. Main re-tracement and resistance confirmed! Preparing for the huge short.Trade active
Selling point reached. There is a lot of uncertainty in the market, however. Perhaps we will see the price test higher before the sell? Is the market waiting for Brexit news, maybe? We have two options:
1. Hold the current trade as the SL is well above a mere 50/500 pip rise in price. Should the market test higher, the trade will survive.
2. Close the current trade with minimal profit. Await SOLID confirmation, re-enter.
Note
Short confirmed.Note
Another BIG profit short incoming.Sell soon.
TP1 - 1.28000
TP2 - 1.26500
SL - Above resistance
Trade active
Trade closed: stop reached
Unexpected breach of strong resistance. Might now act as support for upwards movement to next resistance.Note
Previous prediction was correct. Resistance @ 1.33000 reached.The Cable SHOULD now begin to sell once more, although the trend has broken my long-term TA over and over again.
Although it has been predictable up until this point, the next price movement is baffling to me. I'm throwing in the towel for this one and am going to observe until further notice.
Good luck and may you profit always.
Trade closed manually
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