Weekly

Weekly analysis is a mostly important for further price action. And we have a bearish view on Cable. First, market has accomplished perfect Gartley AB=CD “Sell” pattern almost pips to pips. This pattern very harmonic, and usually it leads to solid resistance in “D” point. Also market has confirmed it by bearish engulfing (yellow rectangle) and by Stop licking pattern (red circle) – it just exceeded previous highs, grabbed stops and returned right back. All these patterns are bearish. Although, I’m not a big follower of divergences, but here you also can see it with MACD indicator.

Usual target of AB-CD pattern is some Fibonacci support level.

Daily

Although, weekly bias is bearish, on daily chart we have couple of important nuances. First, market has hit daily Conjunction support area – coincidence of 0.382 and 0.618 Fib supports after solid 3-day sell-off. Second, blue line – is a weekly pivot point and usually, market trades pivots in 70% of cases during the week. I think, that we could count on retracement up.

4-hour

4-hour trend is also bearish. The green line is a displaced 3-period SMA. It shows, that during this huge sell-off there was no even single meaningful retracement up. It means that not too far from current price there are a lot of trailing stops. If market will show close above this green line, then will try to continue move down but will not able to do that and close above it for the second time – then we can count on retracement at least to 1.6140 area.

Also I prefer to see stop grabbing below these lows in yellow rectangle – if market will renew this lows and then will return right back – this will give me more confidence to enter Long.

Site  is opened.  Today we’ve published first financial markets video research for August 09-13, that includes Forex (GBP, JPY), Commodity (Crude Oil) and Equity market (S&P500) analysis. We intends to make new researches on a weekly basis.

Have a nice day!

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Market Researches (Technical analisys)

Comming soon…