A study of COT shows an increase in strength of the USD for next week. While GBP is still in a Moderate down trend of 1.5:1, the short contracts were reduced massively. This tells me that there is going to be a retracement downside. The 38.5% and 50% retracement are the current focus. I dont think price will fall to previous swing low (Covid19). Therefore i would be watching for price to break the 1.22136 for a move to the 50% fib retrace. See how that 50% retracement coincides with other resistance and support level on the weekly and daily.
Please share your thoughts if you disagree or want to add something to this outlook...you know what, just share your thoughts. I would be happy to learn from you.
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Please share your thoughts if you disagree or want to add something to this outlook...you know what, just share your thoughts. I would be happy to learn from you.
**Please like and subscribe to encourage more analysis. Thank you.
Comment:
Price broke out top of range. However, watch for this idea still since price closed below the previous high. Price is currently in a downward range. If we see a consistent close/daily close again above the 1.24840, then this idea is canceled. Thank you.
Comment:
There is a newer more accurate recent post, check it out. Price is following that setup, in the direction predicted here.
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