Welcome to our newest feature; Trend Line Analysis. Our professional market technician showcases intraday / swing trade setups on a broad spectrum of FX currency pairs. The most effective way to use the setup are:
▪ If the price zone fails to hold; we likely to see price moving against us. Fail means; the candle closing higher or lower to indicated price zone.
GBP crosses have lined up in such way that they can use some retraces to let go of Over-Bought conditions before surging for newer highs. With this view; I will be looking to track some optimum spots on it’s crosses to go short. Later on if we do see the drop coming in; I intend to try longs for newer highs.
There is an important news release from UK tomorrow in Prem GDP; and a better than expected numbers can boost the GBP and vice versa on poor readings. Hence some caution is required especially if the entry comes close to the news. It is also advisable to try 1 or 2 of it’s crosses and preferably with lower lot sizes than the regular.
We are looking to set shorts ideally into 192.8X for a possible move lower to 190.2X and subsequently to long off the target zone for a possible meatier target into 196 handle.
We are looking at what looks to be a possible Inverse Head & Shoulder and originally was expecting Right Shoulder to end to 192.2X. We had an earlier decent bounce off it; but than later it fell under and this is hinting that Right Shoulder can come in lower as shown in the 4 hrs chart layout. Overall scenario on the pair is bullish but an initial dip lower seems to be on the card.
4 hrs chart layout shows resistance to 192.60 and 2 hrs shows extended to 192.8X. Naturally getting shorts off 192.8X be better and as such we keep options open to see if price once tested 192.60 shows any holding pattern to go short else try off 192.8X.
The ideal target comes to 190.2X and can look to long off there for the bigger moves likely to see trying a 196 handle out.
I’m interested to try a short off newer highs possibly around to 2.042X zone for an initial runr to 2.0355-60 with potential run lower to 2.0080-2.0010. The prime target on the intended shorts also comes in as decent looking retrace to long the pair for newer highs.
Just like GBPJPY which I believe will end up been higher; overall picture on GBPCAD also is bullish. Just trying to get on the possible drop that may be coming to swing shorts and then the longs.
While the above GBP crosses are mainly to sell if desire levels come into play; GBPAUD we are using to enter retrace buys from T4 trend line or 2.115X. T4 comes in as a decent looking zone to enter longs for a possible retrace back to 2.123X or even fuller back to testing T3 breakout if happening. Alternatively can look to sell the break of T3 or 2.1260 as we have an upcoming GBP data shortly.
Please check the following link as the setup was done last week and it is still valid.
Got any questions about our Trend Line Analysis? Contact us email@example.com
All comments, charts and analysis on this website are purely provided to demonstrate our own personal thoughts and views of the market and should in no way be treated as recommendations or advice. Please do not trade based solely on any information provided within this site, always do your own analysis. For more information please see our full disclaimer in the footer below.