Forex Price Action Setups & Key Levels
Second Skies | Jul 07, 2014 02:53AM ET
GBPUSD – Shallow Pullback + Pin Bar
The cable consolidated over the last few days near the highs forming a support zone around 1.7060 – 1.6975. Upside targets would be the 1.7160 current highs, and an eventual move to 1.7250 and 1.7475.
GBPJPY – Forms Daily Pin Bar, Likely Pullback
Also forming a pin bar on the daily time frame , the GBPJPY had its first bearish close in 5 days, but was bought up intra-day as well, showing a bullish under-pinning to the pair.
I’d be open to buying a breakout, but on the 4hr chart you can see the trend is turning more volatile, suggesting pullbacks are the soup de jour. So we’ll wait for a pullback towards the 174-173.60 region before getting long. Another option I’d be open to would be we have a convincing breakout above 175.50 to start the week, then a corrective pullback to the 175.30 level to get the next leg up, which should be for at least 250-300+ pips.
members commentary last Thursday , we suggested buying off the 1306 support area (4hr chart below), which held again with buyers stepping in and causing another 1500 point bounce, so congrats to those who profited from this.
Both short and medium term bulls will likely have stops placed below 1300, so maintain a bullish bias while we are above it. If the precious metal can take out the 1334 highs last week, then the next upside target will likely be 1351. Note we have not had a close below the daily 20 ema and dynamic support since June 17th and the pin bar on the daily chart.
corrective pullbacks . This most recent corrective pullback is at a flat/obtuse angle, suggesting the selling pressure is quite weak and muted.
I’m suspecting a breakout higher is likely and we’ll print new all time highs this week, so am maintaining a bullish bias. I’d be open to taking a breakout if an impulsive move starts from the bottom of this corrective structure. If not, any pullbacks towards 17,000-16,975 should be viewed as buying opportunities to trade with the trend . Keep holding longs while above 16,950 and look for 17,100 and 17,200 to be likely hit this week.
Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.