GBPUSD Top-Down Analysis (Short then Long otherwise Long)
Hello Traders,
Here is the Top-Down Analysis of GBPUSD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 52 - Dec 21
M > Market is respecting multi-year downward trend-line as resistance however this month it has broken resistance trend-line to the upside.
W > Price is also respecting rising trend-line on a weekly chart. During its bullish move price has broken two key resistance levels and it further tested next weekly resistance. Bearish divergence can be seen.
D > As per analysis 2 weeks ago, and dropping for correction and testing daily support price moved bullish breaking two key resistance levels and faced rejection at third resistance. In the process created bullish flag. Price dropped to retest monthly resistance as support and moved up after facing rejection. Bearish divergence can be seen.
As per COT GBP closed both Long and Short, bringing net positions to +ve after 10 weeks. BXY strengthened during the said period and further strengthened last week to test weekly resistance last week. BXY returned back to test previous weekly resistance now turned support suggesting possible bullish continuation further. However we can see bearish divergence in W and D timeframes.
4H > Price broke monthly support to the downside while dropping and facing rejection at daily support. It is now testing monthly support as resistance again. Price closed the week with rejection at curly key level.
We can expect two scenarios:
1. Price drops to test weekly support coinciding with major demand zone, it will also create a H & S pattern. This level also coincides with downward trend-line that price has broken this month and it is fair for price to return to test the multi-year trend-line as support. This will be a short term scenario as price will move bullish from this level.
2. Price can continue with its bullish move breaking monthly resistance that it tested at close of market last week.
Pair Correlation > GBPUSD has positive correlation with NZDUSD, NZDJPY, GBPJPY and AUDUSD on daily time frame and with GBPCHF and GBPCAD on smaller time frame.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX
Here is the Top-Down Analysis of GBPUSD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 52 - Dec 21
M > Market is respecting multi-year downward trend-line as resistance however this month it has broken resistance trend-line to the upside.
W > Price is also respecting rising trend-line on a weekly chart. During its bullish move price has broken two key resistance levels and it further tested next weekly resistance. Bearish divergence can be seen.
D > As per analysis 2 weeks ago, and dropping for correction and testing daily support price moved bullish breaking two key resistance levels and faced rejection at third resistance. In the process created bullish flag. Price dropped to retest monthly resistance as support and moved up after facing rejection. Bearish divergence can be seen.
As per COT GBP closed both Long and Short, bringing net positions to +ve after 10 weeks. BXY strengthened during the said period and further strengthened last week to test weekly resistance last week. BXY returned back to test previous weekly resistance now turned support suggesting possible bullish continuation further. However we can see bearish divergence in W and D timeframes.
4H > Price broke monthly support to the downside while dropping and facing rejection at daily support. It is now testing monthly support as resistance again. Price closed the week with rejection at curly key level.
We can expect two scenarios:
1. Price drops to test weekly support coinciding with major demand zone, it will also create a H & S pattern. This level also coincides with downward trend-line that price has broken this month and it is fair for price to return to test the multi-year trend-line as support. This will be a short term scenario as price will move bullish from this level.
2. Price can continue with its bullish move breaking monthly resistance that it tested at close of market last week.
Pair Correlation > GBPUSD has positive correlation with NZDUSD, NZDJPY, GBPJPY and AUDUSD on daily time frame and with GBPCHF and GBPCAD on smaller time frame.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX
