Analysis:
-This pair was rejected at the 1.27510 zone and is coming down to test the major support at the 1.26680 zone
-The hourly candle is currently breaking the 50 SMA, if it breaks that line it will continue to go down till the support zone stated above.
-Our RSI is at 50 ,sellers are going to come in and sell until the pair is overbought
-If the major support(this support zone is also the 38.2% Fibonacci zone) doesn't get broken this pair will go back up and possibly break the resistance zone at 1.27510
Things to keep at mind:
-When the NY and london sessions overlap the USD might go up, which will push gbp down
-USA is releasing their Manufacturing PMI and New home sales , these have a forecast that can strengthen the USD
What we do:
-We wait for confirmation at the support area to see if its going to get broken or rejected then we enter either with a buy or sell
-Only risk 1-2% of your accounts equity with a 1:3 risk reward ratio
-This pair was rejected at the 1.27510 zone and is coming down to test the major support at the 1.26680 zone
-The hourly candle is currently breaking the 50 SMA, if it breaks that line it will continue to go down till the support zone stated above.
-Our RSI is at 50 ,sellers are going to come in and sell until the pair is overbought
-If the major support(this support zone is also the 38.2% Fibonacci zone) doesn't get broken this pair will go back up and possibly break the resistance zone at 1.27510
Things to keep at mind:
-When the NY and london sessions overlap the USD might go up, which will push gbp down
-USA is releasing their Manufacturing PMI and New home sales , these have a forecast that can strengthen the USD
What we do:
-We wait for confirmation at the support area to see if its going to get broken or rejected then we enter either with a buy or sell
-Only risk 1-2% of your accounts equity with a 1:3 risk reward ratio
Backtesting: support wasnt able to break @ 1.27303 zone and went up