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
DXY Forecast and Trade Setup for the week ending 29th August, 2014
Weekly Chart
- What a huge week for the DXY, clearly broke through resistance and having a huge bullish Candle closing at the highs
- At the time of writing this, we opened Monday gaped up, so we will monitor this.
Daily Chart
- Supply and Demand is at 82.5-82.60 area,
- RSI Negative Divergence
- If prices do surpass the supply and demand zone, then the next resistance could be around the 83.00 level which is the upper channel of perhaps the andrews pitchfork? (dunno how to draw it but i think it looks the same!)
Outlook Trade opportunity
During asia, i am taking advantage of the gap up higher but stalled at shy of 82.60 (supply and demand) and choosing the Aussie for a small scalp to the long side.
Perhaps a small position to short the DXY with stops above 82.60
Risk Level __
Tips -
Always take note of any economical news event on our provided calender below
