The Weekly Update: The Technical Wheels Are Turning

GBP Technical Strategy

Our bullish projections for GBP appear to be in motion across a number of pairs and crosses in the Forex market. It is essential to highlight GBP reversal is expected to continue for several months, it difficult to predetermine what may be the initial trigger.

The spike lower on Friday was triggered on reports RBS will impose negative interest rate on large deposits. If more banks will follow it means we must be aware in advance for the recurrence of short-lived spikes in GBP pairs and crosses. What we must also determine is whether we wish to maintain such an exposure to GBP pairs and crosses rather than spread our risk in the market.

GBPNZD 4hr Chart

Please click on the chart to enlarge:

GBPNZD Weekly Chart 21/08/16

GBPNZD Weekly Chart 21/08/16

GBPNZD 4hr chart shows the beginning of an uptrend, which is inline with the weekly chart. Due to the spike that triggered by RBS, we hope GBPNZD will gap lower at the opening of the Forex market. A gap higher will be more challenging as we it may dent the risk ratio of the long signal.

EURGBP Weekly Chart

Please click on the chart to enlarge:

EURGBP Weekly Chart 21/08/16

EURGBP Weekly Chart 21/08/16

We avoided EURGBP as we anticipated a strong Euro, however, it appears EURGBP uptrend has been exhausted. We can already determine the protective stop must be layered above 0.8760. We could opt for a 4hr entry but we prefer establishing the signal on the weekly chart.

We are unconvinced JPY buying is over, which is why we are avoiding JPY although EURJPY and AUDJPY are suggesting corrective gains may be seen. GBPAUD and GBPCHF require a lower price in order for us to consider an entry. GBPCAD requires a hefty stop despite a potential entry. We may opt for GBPCAD but only if a substantial gap lower takes place.

Italy Referendum

The Italian referendum is likely to have a significant impact on the market. As seen with the brexit, the polls may dictate the tone of numerous financial instruments. Once an official date for the referendum is announced (expectations are November 2016) we will begin focusing on all EUR pairs and crosses. As opposed to the UK, the referendum is likely to take place on a Sunday. If exit polls will be released (which did not place in the UK) gaps will be seen at the opening of the markets.

It is early to suggest the polls will play a role in GBP uptrend.

GBPNZD Trade Alert

Please click on the chart to enlarge:

GBPNZD 4hr Chart II 21/08/16

GBPNZD 4hr Chart II 21/08/16

GBPNZD long at market price (1.8015)
Take profit: 1.8430
Protective stop: 1.7902
Risk Ratio (RR): 1 : 4 (approx.)
Estimated duration: 7 days

EURGBP Entry Order

Please click on the chart to enlarge:

EURGBP Weekly Chart II 21/08/16

EURGBP Weekly Chart II 21/08/16

EURGBP Entry Order (sell limit): 0.8695
Take profit: 0.8310
Protective stop: 0.8798
Risk Ratio (RR): 1 : 3 (approx.)
Estimated duration: 21 days

22/08/16 UPDATE: GBPNZD is trading at 1.8073 at the time of this writing. As this is a 4hr entry there is no need to wait for the daily close. We closing 20% of the long trade at market price and shift the protective stop to the entry.

Please click on the chart to enlarge:

GBPNZD 4hr Chart 22/08/16

GBPNZD 4hr Chart 22/08/16

We will be relatively close to the market but this was not a weekly entry.

22/08/16 UPDATE: GBPNZD spiked lower, triggering the protective stop that was shifted to the entry. We have ended the trade with a minor profit.

The Weekly Update: The Technical Wheels Are Turning

As all trades are closed this page can now be accessed by all traders. Open trades and relevant intraday strategies are restricted to members only. We have been providing trade alerts in the Forex market since May 2014.
The Weekly Update: The Technical Wheels Are Turning

MEMBERSHIP PLANS INTRADAY STRATEGIES OUR TRADE ALERTS
The Weekly Update: The Technical Wheels Are Turning

new performance pc edit 9294

The Weekly Update: The Technical Wheels Are Turning

Last Updated on September 13, 2016