With all eyes on Thursday’s Scotland’s referendum, GBP-USD is in holding pattern. Exactly a week ago, this market opening with a gap and promptly fell to1.60508– just above the 50.0% retracement of 1.48118 to 1.71902 at 1.60010and rebounded. By the end of the week, price action has turned around; hovering near the week’s high at 1.62757. This turn-around took place on the back of thedouble reversal signals (long-legged shadow doji and bullish engulfing bar) seen in the D1 chart – suggesting a potential sustainable recovery. But with price action stuck between the supply pocket at1.65346-1.66426 at the 38.2% retracement of 1.66426 to 1.60508 at 1.62769(refer to H1 chart), this market remains vulnerable to a selloff from here. In so long as1.60508 holds, a low risk buying opportunity may arise from within the 61.8% and 78.6% retracement of 1.60508 to 1.62757 at 1.61367and 1.60989respectively.
TRADE IDEA #1 Sold at 1.62559 Stop-Loss: Exit on H4 close above 1.63467 Primary Target: 1.61367
TRADE IDEA #2 Buy between 1.60976-1.61367 Stop-Loss: Exit on H4 close below 1.60508 Primary Target: 1.62267 Secondary Target: 1.63266
This message was edited by wushou on 17-Sep-2014 @ 7:24 PM
This was a quiet start for the week as price action marked time. There is no change in outlook. Last week, price action rebounded from a 14-month low at 1.28588and rose into a minor overhead supply pocket at 1.29727-1.29879 on Friday.This level is located in between the 38.2% retracement of 1.35193 t 1.28588 at 1.29736 and the 100.0% extension of 1.28588 to 1.29621 from 1.28830 at 1.29836(refer to H1 chart).As therise is corrective in nature, it is likely to have peakedat 1.29788and while price action over the last 24 hours has turn lower,there is no confirmation that the fall has resumed. In the short to medium-term, only a sustained break below1.28588would mean confirm the resumption ofthe fall with focus on the 61.8% retracement of 1.20414 to 1.39929 at 1.27869(refer to W1 chart). This level is located just above a major demand zone at 1.26602-1.27786in the D1 chart. Alternatively, if this rebound from 1.28588extends higher beyond 1.29788, topside potential is probably limited to the 23.6% retracement of 1.39929 to 1.28588 at 1.31264 and the September 3 high at1.31593.
TRADE IDEA #1 Sold at1.29743 Sell between 1.30110-1.30394 Stop-Loss: Exit on H4 close above 1.29879 Primary Target: 1.27786 Secondary Target: 1.27045
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GBP-USD Medium to Short Term Outlook 17/09
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17-Sep 2014 Wednesday
7:13 PM (3511 days ago)
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