GBPUSD [Buy the Rumors & Sell the News] Triangular Contraction
Updated
Observation
Price reach highest since last Feb 28 this year
Contracting Triangle - Wider opening
News Mar 21: GBP CPI YoY (FEB) Forecast 2.1%, Actual 2.3%, Previous 1.8%
BUT Not enough momentum to break dynamic resistance
Contracting Triangle - Narrower opening
News Apr 4: pending
Analysis
If price action remains in this area (will not break dynamic resistance)
then market confidence will fade and price will go down
Order: SHORT
Price reach highest since last Feb 28 this year
Contracting Triangle - Wider opening
News Mar 21: GBP CPI YoY (FEB) Forecast 2.1%, Actual 2.3%, Previous 1.8%
BUT Not enough momentum to break dynamic resistance
Contracting Triangle - Narrower opening
News Apr 4: pending
Analysis
If price action remains in this area (will not break dynamic resistance)
then market confidence will fade and price will go down
Order: SHORT
Note
Price action nearly touch the dynamic resistance. High probability for a breakout.
Opportunity for a hedge on the narrower triangular contraction.
Note
Price has respected the dynamic resistance of the channel.High probability price will go and seek to touch dynamic support.
Probably go for short now.
Note
Price Stop at the Dynamic Resistance of the Triangular Contraction.Then market decides to break it.
Strong move.
Market may now be in consolidation mode.
Note
Price kept testing the strength of the Dynamic Resistance of the narrower Triangular Contraction but it give way and break it strongly.
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