Trade view /
13 July 2016 at 7:34 GMT
I think that GBPUSD is reaching a temporary high, and here is why... (we have the Bank of England interest rate decision tomorrow so this is a high-risk trade).
Monthly: Highlights dip buying but, we have 12 trading days until month-end, so little notice should be taken of this. The 78.6% pullback level from the 1.0362-2.1161 is seen at 1.2673 and is the next downside barrier.
Create your own charts with SaxoTraderGO click here to learn more
Source: Saxo Bank
Daily: After dip buying on Tuesday, and a bullish Outside Day posted, we continued to the upside yesterday. Bespoke resistance is seen at 1.3361 with a previous barrier zone seen at 1.3495.
It should be noted that we only need to see a daily close below 1.3361 for the bespoke barrier to be intact.
Source: Saxo Bank
One hour: Highlights an Ending Wedge close to bespoke resistance. It should also be noted that we have a possible five wave count (Elliott Wave) but it is unclear where the first wave starts!
We have noted both sequences. We are breaking the wedge as I write. With bespoke support at 1.3217 (close to the start of the wedge) we may well bounce from this level and form a bearish Head and Shoulders (15-minute chart).
DeMark: Has posted an exhaustion 13 count on the one-hour chart.
EURGBP: Using correlation EURGBP is near exhaustion. We have a 261.8% extension at 0.8271 (from 0.8626-0.8490). We have bespoke support at 0.8320. Again, a daily close above this level and it is regarded to be intact (solid support).
Management and risk description
If selling at the market you need to be happy to add in on rallies. We will keep you updated if other formations emerge.
Entry: sell at 1.3350.
Target: 1.2950 and 1.2680.
Time horizon: this week.
— Edited by Michael McKenna
For more on forex click here
Non-independent investment research disclaimer applies. Read more