Monthly
Since sterling's bottom in October 2016, the pair has been steadily climbing to regain strength post the Brexit decision. We saw a final stalling point at the begging on 2018 with rejections of 1.4250 as well as inability to sustain above 1.4000. The April shooting star was followed by a strong bearish candle taking out 1.3500 as well as both EMAs. A reversal in the works.
Weekly
Weekly EMAs have crossed to the downside - last week we saw 1.3250 holding as support with a doji formation, more of an indecisive candle which leads me to believe that we will continue seeing downside pressure after the market has retraced. This week, we are seeing further pressure to the downside hopefully allowing us to close below 1.3250.
Daily
The daily chart has been producing textbook lower highs and lower lows. Friday last week closed as shooting star, rejected both EMAs and as the markets opened yesterday, price retested our dynamic areas of resistance and today we have engulfed that candle as well as closed below 1.3250.
H4
Again, textbook lower highs and lower lows - a pullback into the fib region with a break of the CTL as well as EMA crossover bringing us in alignment with higher TFs.
Since sterling's bottom in October 2016, the pair has been steadily climbing to regain strength post the Brexit decision. We saw a final stalling point at the begging on 2018 with rejections of 1.4250 as well as inability to sustain above 1.4000. The April shooting star was followed by a strong bearish candle taking out 1.3500 as well as both EMAs. A reversal in the works.
Weekly
Weekly EMAs have crossed to the downside - last week we saw 1.3250 holding as support with a doji formation, more of an indecisive candle which leads me to believe that we will continue seeing downside pressure after the market has retraced. This week, we are seeing further pressure to the downside hopefully allowing us to close below 1.3250.
Daily
The daily chart has been producing textbook lower highs and lower lows. Friday last week closed as shooting star, rejected both EMAs and as the markets opened yesterday, price retested our dynamic areas of resistance and today we have engulfed that candle as well as closed below 1.3250.
H4
Again, textbook lower highs and lower lows - a pullback into the fib region with a break of the CTL as well as EMA crossover bringing us in alignment with higher TFs.