Weekly trend reversal level: 1.6750
Key resistance levels: 1.6350, 1.6420, 1.6500
Today's trade suggestion:
An extremely interesting chart pattern has emerged for the pound. Having failed to cement the break out of the top of the range channel last week, the pound has collapsed back to the bottom of the range. To add to that, the weekly candle pattern last week was a “bearish engulfing pattern” which has caused us to reverse the weekly direction to short? We’ll now look to sell into rallies to key resistance levels, with the first target at the range bottom at around 1.6200. Important resistance levels lies either side of 1.6400 (1.6380–1.6420) Watch and wait for a clear reversal signal before selling - target 1.6200. Aggressive traders can hold shorts into 1.6200, and add to shorts on a bounce from 1.6200, with a break below targeting 1.6000.
An extremely interesting chart pattern has emerged for the pound. Having failed to cement the break out of the top of the range channel last week, the pound has collapsed back to the bottom of the range. To add to that, the weekly candle pattern last week was a “bearish engulfing pattern” which has caused us to reverse the weekly direction to short? We’ll now look to sell into rallies to key resistance levels, with the first target at the range bottom at around 1.6200. Important resistance levels lies either side of 1.6400 (1.6380–1.6420) Watch and wait for a clear reversal signal before selling - target 1.6200. Aggressive traders can hold shorts into 1.6200, and add to shorts on a bounce from 1.6200, with a break below targeting 1.6000.
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