GBP/USD: So OK - first off, it's nice to call the recent high on the market in my last review ('Personally, it seems to me that the market had recently tried once again up to the resistance 1.2775 -1.2812 and seemingly failed...again. It would therefore seem likely that we may therefore try lower...') though I don't think the market will let me make a habit of that.
Secondly, I'm sorry the Daily Chart above is a messy one but unfortunately that is the detail I have to put up with and therefore feel obliged to show you what a tight mess of support & resistance is where we are in this seemingly neutral looking market (bullet point above sorted). Therefore, since my last report, we've headed down with a couple of false efforts in both directions. It seemed that by last Thursday with the close below the key 50% Fib at 1.2343 that the market had decided to finally try lower.
However, action on the Friday has seemingly negated that move with a failure to break and close, ideally consecutively, below the Lower Tine of the Oct 2016 - Jan 2017 Schiff Pitchfork (currently 1.2236) AND the 38.2% Fib of the Flash Crash move at 1.2211. This is indicative of a potential try higher in the first few days of next week and the question is whether prices can go further still with the first real resistances at the previously mentioned 50% Fib at 1.2343 and the newly drawn 50% Fib at 1.2459.
Failure to form consecutive closes over the former and then soon after the latter in fairly swift time doesn't mean the market will turn bearish, rather it may be indicative of a move to the third way (bullet point reference again) of sideways. Only consecutive closes below 1.2211 would suggest bearishness - much like the other higher levels would indicate bullishness. This is where we seem to be at the moment. I finally draw your attention to two items; the circled crossovers of the Andrews and Schiff Pitchfork Tines on the 15th and the 23rd. These may indicate changes in trend, reinforcement of a trend or just very volatile days; watch out.
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