Hello Traders,
Here is the Top-Down Analysis of GBPUSD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 50 - Dec 07
M > Market is respecting downward trend-line as resistance. Price tested monthly resistance again and while doing so it has broken the resistance trend-line. Price can pull back to retrace and close below the trend-line this month. Placing Fib on last monthly bullish impulse we can expect correction till 0.382 or 0.5 Fib level.
W > Price is also respecting rising trend-line on a weekly chart. Market closed last week with a rejection wick.
D > Market closed with a bearish pin bar suggesting a trend reversal. During its rise in past couple of weeks price has shown lot of volatility creating demand zone of over 100 pips hence in its downward move we can expect pause and not a structural pattern of LH and LL.
As per COT GBP has further added major Long but closed Short, slightly improving net positions (still in -ve). BXY however after gaining strength closed on a weak note during the said period, it gained strength last week but closed with rejection.
4H > Price is facing rejection at demand zone and we can expect a pull back to the upside before price continues with its downward move.
Recommendation > Due to pairs volatility it is recommended for intraday trading on lower time frame for gain from its both upward as well as downward move.
Pair Correlation > GBPUSD has positive correlation with NZDUSD, NZDJPY, AUDUSD and GBPJPY and negative correlation with USDCAD.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX
Here is the Top-Down Analysis of GBPUSD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 50 - Dec 07
M > Market is respecting downward trend-line as resistance. Price tested monthly resistance again and while doing so it has broken the resistance trend-line. Price can pull back to retrace and close below the trend-line this month. Placing Fib on last monthly bullish impulse we can expect correction till 0.382 or 0.5 Fib level.
W > Price is also respecting rising trend-line on a weekly chart. Market closed last week with a rejection wick.
D > Market closed with a bearish pin bar suggesting a trend reversal. During its rise in past couple of weeks price has shown lot of volatility creating demand zone of over 100 pips hence in its downward move we can expect pause and not a structural pattern of LH and LL.
As per COT GBP has further added major Long but closed Short, slightly improving net positions (still in -ve). BXY however after gaining strength closed on a weak note during the said period, it gained strength last week but closed with rejection.
4H > Price is facing rejection at demand zone and we can expect a pull back to the upside before price continues with its downward move.
Recommendation > Due to pairs volatility it is recommended for intraday trading on lower time frame for gain from its both upward as well as downward move.
Pair Correlation > GBPUSD has positive correlation with NZDUSD, NZDJPY, AUDUSD and GBPJPY and negative correlation with USDCAD.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX
