GBP began clawing back its losses from FOMC week as a silver lining appears to show through its Monetary Policy announcement. 1 more vote has joined Michael Saunders in beginning the asset tapering for Great Britain and this wasn't much of a surprise after seeing GBP smash its CPI Y.Y from last year's 2% to what it is now 3.2%.
The market has seen this as a positive outcome and has given GBP a chance to recontinue its trending upwards structure after consolidating above 1.37200.
My idea is to Buy GU @ 1.37000 SL 1.36880 TP 1.37665 R:R 1:5.6
Confluence details:
1. Bounce off-key level at 1.37000
2. 0.382 fib retracement level
3. fib extension 1.414 confluence
4. Bullish fakeout pattern + Consolidation above 1.37215 shows strength in the market
5. D1 Previous structural levels indicate similar pattern Price pullback to 1.37000 for further liquidity before moving upwards.
6. D1, H4 & H1 candlestick anatomy shows the probability for GBP to continue trending up is high.
7. Pullback to 1.37000 confirms a LH for a 3-leg extension to occur
Please Note: I will be waiting for pullback to complete and a momentum switch to occur on M5 timeframe before entering a buy position at this level.
Let's see if we can finish off the week strong with GBP reaffirming its bull run!
The market has seen this as a positive outcome and has given GBP a chance to recontinue its trending upwards structure after consolidating above 1.37200.
My idea is to Buy GU @ 1.37000 SL 1.36880 TP 1.37665 R:R 1:5.6
Confluence details:
1. Bounce off-key level at 1.37000
2. 0.382 fib retracement level
3. fib extension 1.414 confluence
4. Bullish fakeout pattern + Consolidation above 1.37215 shows strength in the market
5. D1 Previous structural levels indicate similar pattern Price pullback to 1.37000 for further liquidity before moving upwards.
6. D1, H4 & H1 candlestick anatomy shows the probability for GBP to continue trending up is high.
7. Pullback to 1.37000 confirms a LH for a 3-leg extension to occur
Please Note: I will be waiting for pullback to complete and a momentum switch to occur on M5 timeframe before entering a buy position at this level.
Let's see if we can finish off the week strong with GBP reaffirming its bull run!