[GVI Forex 2]

GBUSD DAILY CHART – Bailey turns dovish

The old trading adage that it’s the reaction to news more than the news itself that matters held true in the GBPUSD as it took another leg down after dovish comments from BOE Bailey in an FT article. Price moves (note firmer EURGBP as well) underscore how interest rate cut expectations are driving these markets.

I had to go to the daily chart to find potential support levels on the downside, So far, an AT support at 1.2578 is holding, below it there is one level ahead of the pivotal 1.25.

Hard to chase after a big move but it trades soft below the lower end of intra-day resistance is at 1.2645-75,.

Take a look at the 2 blue AT lines on the daily chart, the failure to test the 2nd line, and how the risk turned to the downside.

[GVI Forex 2]

EURGBP 15 Minute Chart – Whipsaw

 

How to define whipsaw in trading:

Whipsaw in trading describes a sharp increase or decrease in an asset’s price, which goes against the prevailing trend. Whipsaw is different to other reversals because it is characterized by a sudden change in an asset’s momentum shortly after a trader has opened their position.

Today: EURGBP fell to its low after weak EZ flash PMIsand then turned bid after the BOE monetary policy decision

This is a whipsaw

Meanwhile, the chart does not show the key level on top, which is at .8576 (high so far .8573)

On the downside, expect support if .9550 holds.

[GVI Forex 2]

GBPUSD 3 HOUR CHART

While no change in rates is expected from the BOE, it pays to stay alert following the volatility after Central Bank meetings this week.

See key levels on both sides on this 3 hour chart.

[wfakhoury Amman]

GBPUSD
Jay, you can say, Incredible call.

[wfakhoury Amman]

GBPUSD
The price moved successfully, exactly as per my weekly signal, between 12690 and 12802.

[Swiss Frank]

What there seems to be especially in eur/usd and to some degree gbp/usd is a lack of desire to commit. The weaker links (jpy and chf) are easier to punch down on so there in lies the path of least resistance. That said I don’t get the feeling there are that many people that have been short jpy for months or even weeks…..

[wfakhoury Amman]

GBPUSD 12722 confirmed will be reached.

_______________________________
12722 Reached.

[GVI Forex 2]

GBPJPY DAILY CHART

I had to go to the daily chart looking for a chart level.

All that is left is a breakout above 191.191.32 as support and a monthly resistance above 185.

The key support area is distance at 187.94 as seen on this chart.

In a market like this look for the new high to act as a key resistance.

Be o alert in GBP as CPI, expected to dip, will be released overnight.

‘

[wfakhoury Amman]

GBPUSD 12722 confirmed will be reached.

[wfakhoury Amman]

GBPUSD my weekly signal:
Price returned to 12690 from 12665.
Below 12690 into buy mood.

[wfakhoury Amman]

RE my weekly signal GBPUSD
12690 Reached.
and now any decline below 12690 will return to it.

[GVI Forex 2]

EURGBP 15-Minute Chart — Using Crosses to Trade SPOTFX

Notice how EURGBP’s failure to hold above .8560 (cited earlier) has seen it back off (see falling blue AT lines) has coincided with EURUSD losing its bid above 1.09 (last 1.0892).

I call this using crosses to trade spotFX 101.

[GVI Forex 2]

EURGBO 1 HOUR CHART

Flows into EUR crosses seem to be behind the better EURUSD tone (testing 1.09,) in a market biding its time ahead of key monetary policy decisions this week.

This created a tug-of-war with the USD caught in the middle.

One of the crosses is a firmer EURGBP (in a tight range), so far pausing just below .8560 resistance, which stands in the way of the .8578 level, the top of the current range.

It looks like this cross finds a bid on dips as long as it stays above .8545-50.

[wfakhoury Amman]

GBPUSD signal for the coming week:
price will consolidate between 12810 and 12690. Any rise or decline in the consolidation area will return to it.
Mostly into the sell mood until it reaches 12690.

[GVI Forex 2]

GBPUSD 30 min chart

[SF Monedge]

Yesterday’s hard sell in GbpChf did not change the overall long condition.  That said I will begin testing the sell side around 1.1260 or higher if seen.  Believe the market might attempt to find value in the high 190.40 area, and perhaps the 190.90 area in coming days.

[SF Monedge]

Ok. The market is trying to fill the gap in GbpChf around 1.2630.  This is where I have sell orders.  Make or break.  If make, cancel and ride.  If not, sell.

[GVI Forex 2]

EURGBP 30 Minute Chart

if you are looking for a reason why GBPUSD bounced off its low

1) First look at my GBPUSD post below

20 Look at this EURGBP chart (you can also look at other GBP crosses but I like this one as it is pretty clear where the flow is going).

[SF Monedge]

I like the discourse.  Currency traders have a lot of spirit. In the spirit of viewing cross currencies, I am very dialed in on GbpChf this week and believe the hard sell to the 1170 area on the data did not compromise the average true range of the bigger picture and see decent probabilities for the pair to search for fair value back toward 1250.  That would transfer to other Sterling pairs of course.  So the plan for me today was to close everything last night and hope for a failed downward strike, which we got this time.  So I am looking for the pair to run out of gas a bit higher than current market.

[GVI Forex 2]

GBPUSD 4 HOUR Chart

As noted yesterday, 1.28 is the only level to watch as it will dictate whether GBPUSD corrects further. Note the 2 blue AT lines whuch indicate a potential change in direction that played out.

This chart shows little until 1.2722 so expect the 1.2750-80 zone to be a key one as only a break below the lower end would shift thf focus from 1.28

NOTE

UK labor report showed a slight moderation

EURGBP bounce gave a clue to GBPUSD vulnerable downside

Bew ball game after US CPI later on