Hi, everyone. Let us look at what happened in financial markets today. We will also try to see how you could have predicted those daily market trends in advance. Before starting I want to say that I have recently opened a few more new pages on my blog and you can see them on the right side of the upper corner. They are about eur/chf and eur/cad pairs. I will open six more pages soon. I am planning to update a page for each separate pair at least once a week. So be sure to get insights on some specific security in fx market. I will continue analyze a few pairs each day on the main page, occasionally adding my thoughts about precious metals and oil. Hope to start a section on stocks sometime in the nearest future.
Bullish day for gbp/usd
British pound strengthened a little today. In my opinion it was a technical move for I do not see any significant fundamental news that could have caused the bullishness in pound pairs. Gbp/usd stayed trapped within the range I talked about a few posts before. It showed a lot of strength during European session and as you have expected buying started at previous support of 1.5990 level. Were there any signs regarding where to enter this bullish move? Yes, if you look at 5 minute chart you will see 123 pattern around the mentioned level that was formed in the period of 7:15-8:10 GMT. You could of course buy the break of point number 2. Exit is of course at previous resistance at 1.6115-1.6130 area.
We will have some very important data from Great Britain on Thursday (Bank of England Rate Decision) together with the same piece of data from European Central Bank. I think this information will force gbp/usd out of its current lullaby into some stronger moves.
Breakout in gbp/jpy is not very strong
Gbp/jpy also saw a breakout upwards, but the price is retracing at the moment. Nevertheless, the bullish pattern of higher lows in the pair (recently) would have prepared you for an upward trend move today. A place to buy was a clearance of 130.19 level. Exit was a bit more problematic since the pair failed to reach an even number of 131.00. Like always one possibility was to trade with two positions by closing the first one after the pair ran 20-30 pips and move the stop for the second one by placing it under the ‘valleys’ of 5 minute chart. This would have got you out at 130.60 point.
Hope market trend analysis was useful for you.
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Disclaimer
Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.