GBPUSD Range Continues Across Flat Ichimoku
The GBPUSD range started on October 10th, 2016 after the pair reach an all-time low and was supported by the 1.21 level. With the Invest Diva group members, we've been enjoying some short-term range trading ideas ever-since. Now that Brexit talks are getting serious, I decided to take my focus away from our PowerCourse and write an update on this naughty pair. Here is the IDDA approach to develop a GBPUSD range trading strategy.
1- Fundamental Points
UK side
Brexit Stuff:
Theresa May triggered Article 50 of the TEU yesterday via a six-page letter.
She is hoping to engage is a respectful engagement with EU leaders, and she wants to "negotiate as one United Kingdom." Which probably means the Scottish Independence referendum will not be taking place before this.
(Read full report here)
2- Technical Points
After it's free fall below the daily Ichimoku cloud on Brexit aftermath, the GBPUSD range has continued for well over five months. The upper level of the range falls on the 23% Fibonacci retracement level at 1.2650. The lower level is the new all time low of 1.21.
The pivot point is set right in the middle of the flat Ichimoku cloud, at 1.2395. This is the level we have been using for our range trading strategy.
Learn about Ichimoku: Get Ichimoku Secrets eBook
3- Market Sentiment
At this point the GBPUSD range seems to be narrowing with the Ichimoku cloud also thinning out. So far the pair has formed a Triple Bottom chart pattern, with the neckline also at the 23% Fibonacci retracement level on the post-Brexit downtrend.
Since the Brexit storm seems to be calming down, this could very well be the calm before a trend-changing storm.
GBPUSD Range Trading Strategy
Disclaimer: Forex is one of the HIGHEST risk investing instruments there is. Calculate your risk tolerance (or join our free workshop) to take the necessary steps before adding GBPUSD to your portfolio. For further help, please visit our investing group.
Read more: click here
1- Fundamental Points
UK side
Brexit Stuff:
Theresa May triggered Article 50 of the TEU yesterday via a six-page letter.
She is hoping to engage is a respectful engagement with EU leaders, and she wants to "negotiate as one United Kingdom." Which probably means the Scottish Independence referendum will not be taking place before this.
(Read full report here)
2- Technical Points
After it's free fall below the daily Ichimoku cloud on Brexit aftermath, the GBPUSD range has continued for well over five months. The upper level of the range falls on the 23% Fibonacci retracement level at 1.2650. The lower level is the new all time low of 1.21.
The pivot point is set right in the middle of the flat Ichimoku cloud, at 1.2395. This is the level we have been using for our range trading strategy.
Learn about Ichimoku: Get Ichimoku Secrets eBook
3- Market Sentiment
At this point the GBPUSD range seems to be narrowing with the Ichimoku cloud also thinning out. So far the pair has formed a Triple Bottom chart pattern, with the neckline also at the 23% Fibonacci retracement level on the post-Brexit downtrend.
Since the Brexit storm seems to be calming down, this could very well be the calm before a trend-changing storm.
GBPUSD Range Trading Strategy
Disclaimer: Forex is one of the HIGHEST risk investing instruments there is. Calculate your risk tolerance (or join our free workshop) to take the necessary steps before adding GBPUSD to your portfolio. For further help, please visit our investing group.
Read more: click here