Our take on the GBP...
Weekly gain/loss: + 82 pips
Weekly closing price: 1.2472
Despite weekly price boasting its second consecutive weekly gain last week, the pair is now seen trading within the walls of a supply zone visible at 1.2569-1.2404. Another key thing to note here is the closing candle’s end-of-week correction! In the event that the bears pull the unit lower this week, price will likely find a pocket of bids sitting nearby the 2017 yearly opening level at 1.2329.
Seen within the current weekly supply zone is a daily Quasimodo resistance level drawn from 1.2523, which managed to hold price lower on Friday. The full-bodied bearish candle seen from here may be enough to entice sellers into the market to bring the unit down to demand at 1.2334-1.2379 (located a few pips above the aforementioned 2017 yearly opening level).
As can be seen from the H4 chart, the daily Quasimodo resistance line is also reinforced with an 88.6% retracement seen at 1.2518. For those who read Friday’s report you may recall that our team recommended waiting for a H4 close to form beyond the 1.25 handle before considering shorts. This took place going into the early hours of Friday’s segment, with 1.25 holding beautifully as resistance throughout the day. In fact, the week ended printing a nice-looking full-bodied bearish candle from this number!
Our suggestions: Depending how the market opens today, we would consider jumping in short. In light of the higher-timeframe resistance in play right now, the nearby H4 mid-way support at 1.2450 will likely be taken out and price could connect with 1.24, which happens to be our first take-profit target.
Data points to consider: FOMC member Evans speaks at 5.15pm, as well as FOMC member Kaplan taking the stage at 10.30pm GMT.
Levels to watch/live orders:
• Buys: Flat (stop loss: N/A).
• Sells: Potential shorts at the open (stop loss: 1.2510).
Weekly closing price: 1.2472
Despite weekly price boasting its second consecutive weekly gain last week, the pair is now seen trading within the walls of a supply zone visible at 1.2569-1.2404. Another key thing to note here is the closing candle’s end-of-week correction! In the event that the bears pull the unit lower this week, price will likely find a pocket of bids sitting nearby the 2017 yearly opening level at 1.2329.
Seen within the current weekly supply zone is a daily Quasimodo resistance level drawn from 1.2523, which managed to hold price lower on Friday. The full-bodied bearish candle seen from here may be enough to entice sellers into the market to bring the unit down to demand at 1.2334-1.2379 (located a few pips above the aforementioned 2017 yearly opening level).
As can be seen from the H4 chart, the daily Quasimodo resistance line is also reinforced with an 88.6% retracement seen at 1.2518. For those who read Friday’s report you may recall that our team recommended waiting for a H4 close to form beyond the 1.25 handle before considering shorts. This took place going into the early hours of Friday’s segment, with 1.25 holding beautifully as resistance throughout the day. In fact, the week ended printing a nice-looking full-bodied bearish candle from this number!
Our suggestions: Depending how the market opens today, we would consider jumping in short. In light of the higher-timeframe resistance in play right now, the nearby H4 mid-way support at 1.2450 will likely be taken out and price could connect with 1.24, which happens to be our first take-profit target.
Data points to consider: FOMC member Evans speaks at 5.15pm, as well as FOMC member Kaplan taking the stage at 10.30pm GMT.
Levels to watch/live orders:
• Buys: Flat (stop loss: N/A).
• Sells: Potential shorts at the open (stop loss: 1.2510).
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