Potential Bullish Bat for GBP, Wait till Confirmation of 1.3210
Updated
Price is in consolidation during the past week, ranging firecely with lower high and lower low between 1.35-1.33, and tested the weekly low 1.3340.
Please be cautious that 1.3340 is the crucial Fibo retracement level since Sep 14th, and price retested the low area later Sep 29th night, then formed into a support zone, at 1.3340-1.3360 in the orange box above.
Meanwhile, the support zone nears the middle channel of long term uptrend channel measured with pitchfork, which make sense given the situation that the BOE still have possibility to raise interest rate in next 1-2 quaters, in order to ease the climbing inflation rate, which can become the major drive for the uptrend of sterling in next several months.
Thus I'm going to buy weakness each time during next 1-2 week, until the price finally break down the 1.3200 level effectively thus turning into a bearish markert.
Price of pound may keeps falling down slowly within the downtrend channel formed by black bolded dashed line.A bullish bat is forming, and I'm going to set up a long position at the D point at 1.3200-1.3210, with high risk-reward ratio and in line with the major trend direction.
From another prospective, rebound of usdollar index is of high probability in the October,both fundamental and technical factors, but maynot as strong as people usally thought, u can find more in my previous post below on USD,and please watch out the 92.30 support and mid-term target at 95.3.
Now it is time to plan for the trade, and wait for the right moment to pull the long trigger!
BUY GBPUSD @1.3210
SL: 1.3160
TP1: 1.3310
TP2: 1.3440
TP3: 1.3510
Let's wait and see! And feel free to let me know for comment and feedback :)
Please be cautious that 1.3340 is the crucial Fibo retracement level since Sep 14th, and price retested the low area later Sep 29th night, then formed into a support zone, at 1.3340-1.3360 in the orange box above.
Meanwhile, the support zone nears the middle channel of long term uptrend channel measured with pitchfork, which make sense given the situation that the BOE still have possibility to raise interest rate in next 1-2 quaters, in order to ease the climbing inflation rate, which can become the major drive for the uptrend of sterling in next several months.
Thus I'm going to buy weakness each time during next 1-2 week, until the price finally break down the 1.3200 level effectively thus turning into a bearish markert.
Price of pound may keeps falling down slowly within the downtrend channel formed by black bolded dashed line.A bullish bat is forming, and I'm going to set up a long position at the D point at 1.3200-1.3210, with high risk-reward ratio and in line with the major trend direction.
From another prospective, rebound of usdollar index is of high probability in the October,both fundamental and technical factors, but maynot as strong as people usally thought, u can find more in my previous post below on USD,and please watch out the 92.30 support and mid-term target at 95.3.
Now it is time to plan for the trade, and wait for the right moment to pull the long trigger!
BUY GBPUSD @1.3210
SL: 1.3160
TP1: 1.3310
TP2: 1.3440
TP3: 1.3510
Let's wait and see! And feel free to let me know for comment and feedback :)
Note
Price is under pressure as expected, now testing the supporting box in the chart, be paitient before setup long trade, as 100 pips is not some long distance for the sterling.Wait till the confirmation signal
Note
Price is consolidating near 1.3230, losing downside momentum, around 20pips towards D point.Trade closed: stop reached
We can see that price did rebound when reaching D point levels, while breaked out during May's speech.
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