I consider the market to be consolidation (ranging mode) again today. With major market options expiring today and over the course of the week, this is expected somewhat. The mover and shaker of the day however, in this "doldrums" of a market, is the GBP.
It has fallen against most other currencies, strongly against the AUD and USD. In the GBPUSD, neither the bulls or the bears have full control, and the pair is in full range mode until key levels are broken. A GBPUSD non-vanilla option is also expiring today at the 1.3000 level. Current major support holding on the daily chart is 1.2850. What's a trader to do?..Well I'm gonna try to trade the range...expecting a scalper's profits of course!
I am eyeing a possible reversal of the current fall on the GBPUSD. The pair is currently in a bullish upswing retracement on the daily chart, with the 13 ema crossing the 200 ema. It's long term overall trend however, is bearish. As you can see on the chart, the pair has come to a key level of support. It is the 1.2845-55 area. Price has NOT sustained a close below this level for a couple of days of now. All conditions are set for a possible reversal (buy). ADX is above 20 (which means there is enough momentum in the market to move price). Once price does not break and close with a sustained move below the trend-line or yellow line, I expect bulls to take the lead in the leg up. Profit taking will take place just ahead of just 1.3000 level. Waiting for P&F chart to turn green for entry.
Safe trading all!
It has fallen against most other currencies, strongly against the AUD and USD. In the GBPUSD, neither the bulls or the bears have full control, and the pair is in full range mode until key levels are broken. A GBPUSD non-vanilla option is also expiring today at the 1.3000 level. Current major support holding on the daily chart is 1.2850. What's a trader to do?..Well I'm gonna try to trade the range...expecting a scalper's profits of course!
I am eyeing a possible reversal of the current fall on the GBPUSD. The pair is currently in a bullish upswing retracement on the daily chart, with the 13 ema crossing the 200 ema. It's long term overall trend however, is bearish. As you can see on the chart, the pair has come to a key level of support. It is the 1.2845-55 area. Price has NOT sustained a close below this level for a couple of days of now. All conditions are set for a possible reversal (buy). ADX is above 20 (which means there is enough momentum in the market to move price). Once price does not break and close with a sustained move below the trend-line or yellow line, I expect bulls to take the lead in the leg up. Profit taking will take place just ahead of just 1.3000 level. Waiting for P&F chart to turn green for entry.
Safe trading all!