Постинг
30.03.2016 08:58 -
GBPUSD 30.03 - 10.04.2016
Background
Yesterday, the Bank of England published a statement from its March 23 meeting in which it cited Brexit as the most significant risk to stability. Later today, US consumer confidence data is scheduled for release but the “big news” will come on Friday.
BoE Governor Mark Carney will kick-off with a scheduled speech and later the US nonfarm payrolls data will be released, along with ISM manufacturing and construction spending.
Management and risk description
Since bouncing from trendline support (at 1.3835) on February 29 (see weekly chart below), sterling has been forming a potential Inverse Head and Shoulders reversal formation (refer daily chart below).
A sustained break above Neckline resistance (currently situated at 1.4475) will establish a minimum upside objective of 1.5220 over the coming weeks (refer daily chart).
Support now lies around the mid 1.4300 area and this will probably yield the next rally toward the 1.4475 resistance level. I am expecting this seemingly “well structured” Inverse Head and Shoulders pattern to be validated in the days ahead yielding an initial rally onto 1.4690, en route to 1.5000-plus over the coming days.
I have outlined a trade (below) to capitalise upon this developing situation.
Parameters
Entry: today: buying GBPUSD around 1.4365.
Stop: 1.4297, initially.
Target: 1.5190.
Time horizon: allow several weeks for target to be met.
цитирайYesterday, the Bank of England published a statement from its March 23 meeting in which it cited Brexit as the most significant risk to stability. Later today, US consumer confidence data is scheduled for release but the “big news” will come on Friday.
BoE Governor Mark Carney will kick-off with a scheduled speech and later the US nonfarm payrolls data will be released, along with ISM manufacturing and construction spending.
Management and risk description
Since bouncing from trendline support (at 1.3835) on February 29 (see weekly chart below), sterling has been forming a potential Inverse Head and Shoulders reversal formation (refer daily chart below).
A sustained break above Neckline resistance (currently situated at 1.4475) will establish a minimum upside objective of 1.5220 over the coming weeks (refer daily chart).
Support now lies around the mid 1.4300 area and this will probably yield the next rally toward the 1.4475 resistance level. I am expecting this seemingly “well structured” Inverse Head and Shoulders pattern to be validated in the days ahead yielding an initial rally onto 1.4690, en route to 1.5000-plus over the coming days.
I have outlined a trade (below) to capitalise upon this developing situation.
Parameters
Entry: today: buying GBPUSD around 1.4365.
Stop: 1.4297, initially.
Target: 1.5190.
Time horizon: allow several weeks for target to be met.
