GBPUSD Forecast and Trade Setup for the week ending 29th August, 2014

GBPUSD Forecast and Trade Setup for the week ending 29th August, 2014

Weekly Chart

• Still very bearish with No signs of reversal or pause yet

Daily Chart

• As identified previous weeks, of the potential cypher pattern, we are at the PRZ zone, however it is to note that its nearest resistant is quite strong especially with the huge downtrend
• Correct stops should be in place below the X (below the weekly S2)
• Lower Lows in price but RSI is not showing the same, (Positive Divergence)
• Could play the break of trendline on RSI
• Last week Broke support so need to be cautious

Hourly Chart

• Monday morning gaped down while on the 4HR chart at the really bottom of the support zone on my chart.
• 1st 4Hr candle is bullish to me,

Outlook Trade opportunity

While looking through my charts, I noticed that the DXY Dollar Index has reached a supply and demand zone and reacted from there, therefore it gives a long trade opportunity for the pound dollar for a intraday move and perhaps a longer hold trade (as per the Cypher on daily)

Risk Level - LOW

Tips -

Always take note of any economical news event on our provided calender below