Everything British Pound
lost the week before it did recover last week. This is the real nature of Forex
market. Real trends are rare and currencies too often stay within ranges. Lots
of ups and down happen before market goes anywhere without turning around next
day or next week.
Last week it ended touching
1.5660 level. This is the exact spot it started the week before. What can we
expect this week?
gbp/usd 2 hour chart (market comes back where it left the
week before)
1.5670-1.5700 is key resistance
It is obvious that we have
strong resistance at 1.5660-1.5700 levels. The area has been rejected at least
7 times in 30 days. It does mean something. However, one day any resistance or
support level is broken and price goes wherever it wants to go.
Is false break possible?
False break above the high
is really possible and will probably happen. However, you must remember that
the more price plays with some level, the pressure is created and when finally
the break occurs we can surely expect some momentum to continue and a trend or
at least a short term swing to develop.
I think there will be some
more horizontal work this week and price will eventually break through key
resistance.
COT data implies that long
British Pound positions are increasing and a move up is very likely any time
now.
Break higher is very likely
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