I thought I'd join in on the discussion.
Attached is what I thought was an absolutely beautiful chart of GBPUSD with very clear signals. Prior to the PPI numbers this morning, the price was contained within a triangle. There was, what looks like, a false breakout, or a lower support for a broader triangle. The price broke out of the triangle at about the 3/4 mark, and went all the way up to 1.8886, which was also a previous high of 1.8887.
The price retraced to both the 50% retracement level and the upper edge of the triangle where it has met strong resistance.
So, where does it go from here? Well, I'll be looking for the 50% retracement level to hold. If it comes back through the triangle, I'll obviously reset my expectations.
Anyone have any other observations about this? I just thought it was a picture perfect example of using chart patterns.
Attached is what I thought was an absolutely beautiful chart of GBPUSD with very clear signals. Prior to the PPI numbers this morning, the price was contained within a triangle. There was, what looks like, a false breakout, or a lower support for a broader triangle. The price broke out of the triangle at about the 3/4 mark, and went all the way up to 1.8886, which was also a previous high of 1.8887.
The price retraced to both the 50% retracement level and the upper edge of the triangle where it has met strong resistance.
So, where does it go from here? Well, I'll be looking for the 50% retracement level to hold. If it comes back through the triangle, I'll obviously reset my expectations.
Anyone have any other observations about this? I just thought it was a picture perfect example of using chart patterns.
Attached Image