Cable Update (GBPUSD)

Bullish inside up

For higher timeframe

Any significant dips are a good buy

If we get any

gone short EURUSD 1.2280 and 1.2270
2 positions with 1.2200 target and 1.2140
with Stops above 1.2360

Also Short GBPUSD 1.3900 2 positions
looking for 1.3840
and 1.3700
With Stop 1.4020
Lets not forget the USD INDEX.
have a good Look..
Today's USD index was down but seeing good Bounce if weekly closed above 90.20 92.00 is next week target and that is a lottt of pips in Major pairs
lets see how friday closes in USD INDEX everything was up because of USD weakness, not on EUR or POUND strength.
dont Forget that..
Green Pips to all..

Considering this scenario

Sterling is seeing massive appreciation!

If you are tracking GBPUSD this week, consider this top-down technical perspective.

An ascending channel (bound by navy coloured lines) can be seen on the weekly timeframe from January 2017. This followed a decline which began in July 2014. The most recent price action is around the 38.2 Fib retracement zone of the decline and bulls are in control of the recent order flow. Last week, the bulls took price action to the channel resistance and in an area that is in confluence with the horizontal resistance (i.e. the 1.39750 area) but bears resisted the move. This area was last traversed southward by price action in June 2016. As this is is a confluence of resistance, we may see further southward pullback into the channel in the days ahead. However, anything can happen. If bulls beat the confluence of resistance, we may see a strong northward momentum.

On the daily time frame, price action printed a bearish rejection candlestick around the confluence of resistance last week Friday. This confluence of resistance includes an ascending trendline (chocolate) from August 2017. This confluence of resistance technically lends weight to the possibility of a southward turnaround of price action in this area. And an immediate target of bears for any follow-through this week is likely to be the 1.37000 area, which is the next minor support. This may extend southward to test and validate a support trendline (magenta) from the low of December 27, 2017 before a northward turnaround. Should bears fail to follow through, bulls are likely to seize the initiative for a swift northward turnaround. As a technical trader with a swing trading style, I will wait to see how price action on this pair develops on Monday even though technically the short-term mode favours bears.

I may be wrong. Trade safe and prosper.

KP

Attached Image (click to enlarge)

Attached Image (click to enlarge)

The week started with a small gap up but soon recovered. GBP/Usd has lost its upward strength and consolidating its gains, upside limited to 1.3940.

Looking for 3970. 4045 potential this week.

break or shake? that's the question.

ok looks like a break of small support area, but I'm not short, still flat so far

I may miss it totally but if it pops back up over 1.38900, I may take a long

sold half of my tiny position for a scalp at 39000 likely some pull back here so I'll advance my stop to BE on 2nd half that was filled at 3893

nice little pop over 39000 rather than a pullback, so that took it to a very short term prior high (1m) so I figured since I have no patience, that I'd take the fleeting gain and exit fully out of my position.

also if I remember, some small news at 8:30 ET? &

Since there was no pull back yet after that short term upleg, I should exit rather than hold thru a very highly likely PB that would correct from here, which seems to be developing now

usually I test areas with a small lot and lose and have to make it up on the follow thru to my analysis but those tests are too early, then I end up with tiny gains...

here I just made a couple of bucks without those too-early entries, but it took everything I had to hold me back, I'm still learning

nice trend leg short term, these happen less frequently so I'm not used to trading them, which is why
I didn't re-enter at the trend leg pause, really nice follow thru up for a measured move to the hight of the short-term range

capturing any of that move without losses is new for me so I'm ok missing half of it for now, but my goal is to improve so maybe I can.

This 38906 average level has been a tough nut to crack for the bulls...maybe this hour they will do it.

.....And they did it finally.

This now leaves the 40767 level in the frame as the next bull target level.

So still buying the dips until the charts prove otherwise.

I'm wondering if anyone went short on Wednesday afternoon after seeing a perfect reverse hammer form on the 4HR chart at strong resistance. I missed it thankfully but would've definitely taken the confluent signals as an opportunity to short.

For those that saw it form on the 4HR and didn't take the trade was it the strong bullish trend that tempered your hand? I'd like to know in order to avoid taking a similarly perfect yet faulty signal in the future.

Here is what I'm referring to:

Saw it, but not enough follow through for my liking to take. Needed to take out the lows of the 4hr consolidation area before considering. There was also a harmonic pattern in play that needed more upward work.