Hello Traders, I’m Mani and I’m the writer of Trade 77 section, please follow me on twitter for further updates.
Wish you got some pips from today’s silent market, for the evening we have got some cookies and coffee in GBPAUD pair.
here is the weekly chart of this pair:
It’s so clear that this pair is in a 600pip weekly range for near 3 weeks and I guess that we can see this range until December. But guessing is the best way to have a margin call! So I will try to analyze the market in this situation.
In the daily chart below we can see that it had another try to break 1.6400 level but it couldn’t and it’s in a bearish trend now.
1.6300,1.6200 and 1.6100 are short term supports on the way through 1.5900 and at last 1.5766.
In the H4 chart there is we can 1.6300 level is a strong support with many retests before and now the price is near it, also it bounce off the 20sma.
Moving averages are close to each other and ready to break it, so I’m looking for short setups here as it’s near 50% fibo level in the hourly chart too. I like 1.6200 level to be touched again for the first profit target.
In the other hand when price closes beyond 1.6320 we can see 1.6400 again and in case of breaking the shelf in the weekly chart we should see start of a bullish run.
Note that 1.6336 is 61.8% of the hourly fibo level so look carefully at the price action there and going short at that price would be good with confirmations and GBP CPI data will be released tomorrow and can have a great impact on this pair.
Also want to note “M Top” pattern that formed in the hourly chart of this pair and this pattern indicates a bearish run. You can see this pattern below:
“W Bottom” is against the “M Top” and indicates a bullish run.
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I will write the COT report tomorrow as the numbers released just a few hours before from CFTC.
Winner’s Edge Trading, as seen on: