GBPUSD Forecast and Trade Setup for the week 18th March, 2014
- Do we have a Gartley?
or could a deeper retracement is needed as price hits a fib 127.2 fib ext?
Weekly Chart
- Stochs is starting to diverge and crossing and close to trading below 80 (note we have been trading in a stoch's overbought for quite some time)
Daily Chart
- Price has stalled and rejected from the Inverse Fib Ext 127.2 of the big drop in 2013
- However we are still trading above new support / monthly pivot
- The next resistance is only spotted from a weekly, which we have highlighted in Yellow
Hourly Chart
- Current Stochastics is showing strength to the upside, however price action from last week suggest perhaps a lower low is in favour
- Although the Fib 38.20(from feb low to high) with confluence of previous resistance, and current monthly pivot is extremely important level to hold if we continue to bullish trend. It is possible for price to break this support as a false break and bounce back up. Reasons are
- We have an ascending trendline at a Fib 50 level
- We have a possible Bullish Gartley Harmonic Pattern also at the same area of the fib 50 and trendline
- If prices were to retrace back to the fib 50 level, Daily Stochastics could have a positive divergence which will strengthen the trade
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