GBP/USD: Expectation for the 2nd week of May, 2022
Updated
The GBP has been in the short side for three weeks in a row, and given the close of last week's price below the Value Area Low (VAL) actually validates a continuous downtrend for the GBP. However, the opening price of this week @ 1.2349, which is below the (VAL) and resuming it way down, may be seen as an opportunity for (Responsive Buyers) to push price above.
So, where would Responsive Buyers be lurking to take benefit of this opportunity?
Price at the time of writing this, is at fair price seen by both buyers and sellers. But, pushing price lower triggers Responsive Buyers hanging out at the Value Low (VL), which is the low of last week, to push price higher to at least the fair price registered now.
In conclusion, my strategy depends on the opening price, then the session high and low, to all be present in order to execute my next move. See you all on 09 May, 2022 @ 14:00 GMT.
So, where would Responsive Buyers be lurking to take benefit of this opportunity?
Price at the time of writing this, is at fair price seen by both buyers and sellers. But, pushing price lower triggers Responsive Buyers hanging out at the Value Low (VL), which is the low of last week, to push price higher to at least the fair price registered now.
In conclusion, my strategy depends on the opening price, then the session high and low, to all be present in order to execute my next move. See you all on 09 May, 2022 @ 14:00 GMT.
Note
Note
GBP is doing what was expected of it. Responsive Buyers at the Value Low (VL) pushed the GBP higher to this week's opening price, registering a Session Low @ 1.2261.
Now as the GBP is appreciating, I expect two possible scenarios to happen. You can see in the chart a (Low Volume Activity) area, so, one scenario may be that price may spike at this area, then a selling pressure resumes to drive prices lower. However, the the other scenario might be, that a large candle can form and surpass this area all the way to the POC where price might find a sort of balance.
Now, I'm just waiting for a session high to formulate.
Let's see what happens.
Note
Note
We have a channel that seems to be wide. This may imply a rangebound activity. So, what I do in this situation is focus on the Session High and Low to be taken out. Otherwise, I would just sit this down and do nothing for now.Note
Note
It looks like we are headed for a Long trade. We will wait for a successful breach of this week's session high, and consider opening a Long trade at the Open @ 1.2349 to target the POC and the VAH/VH levels.
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