Price action – I have marked out a few key levels relative to where price currently is to highlight the area where price has reach for the first time in 3 Years.
In 2018, we have seen price action get above these levels however buyers fail to continue higher. The Stochastic around these levels were showing that price was in the overbought region.
Looking at Fundamentals at the time; the CoT index was at 0%, which indicates the net contracts at the highest and lowest points - 0% meaning it is the lowest it has been in the past 36 months.
Commercial orders were at 110K short contracts whilst the Non-Commercial orders were at 113k long, the highest it has been since 2014, and the perfect combination from all 3 of our fundamental tools to go short. March is also a seasonal period in which GBP drops in value.
In 2021, we starting to see the same Overbought price action and Fundamental combination, which indicates that price should start to drop from 1.40, for a weekly phase 2. As we enter march, we also sit in a seasonal window for price to start dropping.
In 2018, we have seen price action get above these levels however buyers fail to continue higher. The Stochastic around these levels were showing that price was in the overbought region.
Looking at Fundamentals at the time; the CoT index was at 0%, which indicates the net contracts at the highest and lowest points - 0% meaning it is the lowest it has been in the past 36 months.
Commercial orders were at 110K short contracts whilst the Non-Commercial orders were at 113k long, the highest it has been since 2014, and the perfect combination from all 3 of our fundamental tools to go short. March is also a seasonal period in which GBP drops in value.
In 2021, we starting to see the same Overbought price action and Fundamental combination, which indicates that price should start to drop from 1.40, for a weekly phase 2. As we enter march, we also sit in a seasonal window for price to start dropping.