The Bears Are Back In Town (GPD) Daily Chart
A close look at the "British Pound Sterling - Chicago Mercantile Exchange - COT Report," shows Non-commercials are net short on the Pound for the first time since December. The overarching fundamental backdrop of Brexit and COVID-19 shows signs of weighing on market sentiment.
www.cftc.gov/dea/futures/deacmelf.htm
Also, one need to take into consideration the short-term bullish steam increasing on the back on the USD. USD is also a safe have currency during times of distress economically. I believe the USD is a bear in the long-run, but for now it may gain some heat and rise.
Technically, we can see a Head & Shoulders pattern forming between the range 1.26522 and 1.21554. A clear reversal pattern and seemingly aligned with the longer trend. The reversal has the potential to fall 444 pips to the downside over longer period of time. Price is currently testing the Monthly S4 Pivot @1.24092.
Price action is well nestled under the 200-WMA and finding resistance along the 50-EMA.
All a longer-term Head & Shoulders as well as bearish formations and momentum on lower time frames to match the larger picture. In other words, look for bearish trades. Trade with the tend, not against. Look for areas of bull exhaustion and take advantage.
A previous published idea has missed both projections. Not so much the downside projections, but in the manner price action, miss out technical patterns.
We can see here ^^^, that the GBP Two-Step has missed expectations. The right side symmetrical triangle breakout mainly consisted of stop hunts to both sides of the triangle. and later continued higher towards our second potential pattern.
The Bat Pattern was missed by 14 pips or so as price returns towards the Daily Pivot @ 1.23422.
However, price action is still well within play. This pattern is not canceled as of yet.
The Bat pattern signals bearish reversal to the downside, lining up with the Head & Shoulders Pattern on the Daily Chart and COT Market Sentiment, more aligned with actual fundamentals.
Overall we have a bear. How we get there will determine, which patterns form and complete.
www.cftc.gov/dea/futures/deacmelf.htm
Also, one need to take into consideration the short-term bullish steam increasing on the back on the USD. USD is also a safe have currency during times of distress economically. I believe the USD is a bear in the long-run, but for now it may gain some heat and rise.
Technically, we can see a Head & Shoulders pattern forming between the range 1.26522 and 1.21554. A clear reversal pattern and seemingly aligned with the longer trend. The reversal has the potential to fall 444 pips to the downside over longer period of time. Price is currently testing the Monthly S4 Pivot @1.24092.
Price action is well nestled under the 200-WMA and finding resistance along the 50-EMA.
All a longer-term Head & Shoulders as well as bearish formations and momentum on lower time frames to match the larger picture. In other words, look for bearish trades. Trade with the tend, not against. Look for areas of bull exhaustion and take advantage.
A previous published idea has missed both projections. Not so much the downside projections, but in the manner price action, miss out technical patterns.
We can see here ^^^, that the GBP Two-Step has missed expectations. The right side symmetrical triangle breakout mainly consisted of stop hunts to both sides of the triangle. and later continued higher towards our second potential pattern.
The Bat Pattern was missed by 14 pips or so as price returns towards the Daily Pivot @ 1.23422.
However, price action is still well within play. This pattern is not canceled as of yet.
The Bat pattern signals bearish reversal to the downside, lining up with the Head & Shoulders Pattern on the Daily Chart and COT Market Sentiment, more aligned with actual fundamentals.
Overall we have a bear. How we get there will determine, which patterns form and complete.
Trade active:
Bat Pattern Activated
Stop: 1.25248
Entry: 1.24697
T1: 1.23849
Plan on taking out half my position and letting the profits run.
Stop: 1.25248
Entry: 1.24697
T1: 1.23849
Plan on taking out half my position and letting the profits run.
Trade closed: target reached:
T1: adjusted to 1.23895
Stop loss moved to 1.24697.
Profit realized @ 1.23895, price action took out entry. Position closed.
Stop loss moved to 1.24697.
Profit realized @ 1.23895, price action took out entry. Position closed.