Sive Morten
Special Consultant to the FPA
- Messages
- 18,648
Greetings everybody,
Today, I think, we could take a look at GBP as nothing interesting is going on Gold market by far. In general, our former idea of 2-leg downside retracement, in shape of AB-CD pattern on GBP is still valid, but the way how it could happen has changed, mostly due fundamental background that now stands in UK, as due technical picture.
As you can see on daily chart - cable didn't go directly down after minor pullback, but turned to triangle consolidation. Although it keeps valid idea of bearish AB-CD, but suggests that "C" point could drift slightly higher. Also take a look - we have bullish MACD divergence. CFTC data, political situation in UK also stands positive. Thus, now we expect upside action first, to 1.3350-1.3370 area, completion of upside AB-CD pattern and then, maybe downside reversal. Now it is not time yet for taking short positions here, on daily:
On 4H chart market stands at resistance and Agreement area as multiple small AB-CD's have been completed. As a result, we also have "222" Sell pattern. But, we suggest that pullback will be tactical, somewhere to 1.3080 area, in a shape of minor AB-CD pattern on 1H chart, then upside action should continue. There are a lot of hints on that - upside acceleration right to Fib level, 2nd wing of "222" pattern is faster, etc. All these signs point on upside continuation. Besides, COP target stands above current level, so, pause in upside action should be short-term.
Today, I think, we could take a look at GBP as nothing interesting is going on Gold market by far. In general, our former idea of 2-leg downside retracement, in shape of AB-CD pattern on GBP is still valid, but the way how it could happen has changed, mostly due fundamental background that now stands in UK, as due technical picture.
As you can see on daily chart - cable didn't go directly down after minor pullback, but turned to triangle consolidation. Although it keeps valid idea of bearish AB-CD, but suggests that "C" point could drift slightly higher. Also take a look - we have bullish MACD divergence. CFTC data, political situation in UK also stands positive. Thus, now we expect upside action first, to 1.3350-1.3370 area, completion of upside AB-CD pattern and then, maybe downside reversal. Now it is not time yet for taking short positions here, on daily:
On 4H chart market stands at resistance and Agreement area as multiple small AB-CD's have been completed. As a result, we also have "222" Sell pattern. But, we suggest that pullback will be tactical, somewhere to 1.3080 area, in a shape of minor AB-CD pattern on 1H chart, then upside action should continue. There are a lot of hints on that - upside acceleration right to Fib level, 2nd wing of "222" pattern is faster, etc. All these signs point on upside continuation. Besides, COP target stands above current level, so, pause in upside action should be short-term.
