Price below key 1.5700 in gbpusd again

The awaited break of 1.5700 in gbp/usd happened, but it turned to be false again, at least at the time of writing and price is again below the level. As you may see from the chart price broke above yesterday’s high and then reversed falling back below key level. That is pretty usual price action in currency market. That also confirms the idea how much manipulated it is. You may not believe it, but how can you explain this kind of price action of breakouts and then reversals the next day. That’s banksters playing with traders’ money.

Anyway, if you chose to be in the game you have to know how to play it. Be sure to watch price action which happens right after a breakout occurs. False breaks are “smart money” tricks to get your money out of your pocket into their pockets. 

We have to continue watching price action to see what happens next. Will there be a continuation of a downtrend or price will rally upwards tomorrow? Anything can happen. Support comes at: 1.5680, 1.5650 and 1.5630. I tend to think a reversal may happen around 1.5650, but that will become clearer after Asian session tomorrow as we will head into European session. 

See you tomorrow with the updates. 

Below key level again

British Pound Drops to Support

Despite ending at the upper part of the range gbp/usd dropped to support during early European session. One can clearly see a reversal pattern forming on 15 minute chart 02:45 to 05:15 GMT, and then price collapsing. The drop might be over as the pair is rallying up from support. We need to wait an hour or two to get confirmation whether the drop is really over or will resume itself. 

There are no major Forex news releases scheduled for today, so trading will probably be more technical than fundamentally driven. 

We have two resistance levels ahead if price starts pushing up. The first one is Asian session high at 1.5697, the second one is last Thursday high at: 1.5723.

Support starts at 1.5630. I expect the level to hold, but if it doesn’t the next level will come at 1.5605, which is the low of 20^th of August. 

Current rate of the pair is 1.5610. I will only start buying if I see a reversal pattern around 1.5630 forming.

Another pair, which is a catalyst to this one, is eur/gbp/ Euro is rising against Pound and when it starts dropping we might see more Pound strength in Pound/US dollar pair. 

Support and resistance levels

Roundup for eurusd and gbpusd

I want to make my last post for today and do the roundup for eur/usd and gbp/usd pairs. These two are my favorite ones. US session is about to end and we can place all the dots on i. 

EURUSD

The pair continued with a bearish bias today. A really good sell signal developed at the start of US session when a couple of bearish pins formed blocked by 200 sma and ema on 15 minute chart. A short could be taken when 13:15 GMT (candle closed) with a stop loss above 1.1125. It would have been around 15 pips depending on your broker spreads and quotes for the pair. Euro is coming back to the middle of the range now. It may start tomorrow European session with a fresh break below today’s low or coming close to it. In that case I would wait for a bullish reversal signal to go long. The same is true if price goes up during European session and forms a bearish signal. I would be happy to go short. 

eur/usd bearish signal on 15 minute chart

GBPUSD

British Pound exhibited the same kind of behavior as Euro. The pair rallied initially at Frankfurt open, then formed bearish railroad tracks and reversed suddenly. It then proceeded to fall and it did fall through European and US sessions. It does not look like it is ready to bounce now too. However, daily close at the lows does not mean tomorrow price will head lower. On the contrary, it may reverse and go up and even breach today’s high. If today low is broken I will wait for a reversal pattern to go long. 

I missed today’s bearish signal, caught the bullish one, but had to take a scratch of 6 pips as US session is closing now and I do not want to keep my position over the night. 

gbp/usd bullish signal on 15 minute chart

 And the video: