Bias: I see potential for a test of 0.6894-0.6927 which should hold to avoid stronger losses
Losses did develop that pushed all the way to the 0.7032-49 area€¦ but then pushed straight through to reach 0.6952. I am not sure the downside is complete yet and feel there is still risk of the 0.6894-0.6927 area being tested. Watch this area for a bullish reversal pattern. Only an earlier break above 0.7019 followed by 0.7048 would suggest the low is already in place and if seen this is likely to provoke follow-through higher to 0.7139 at least. Take care here as this could cap for a correction. Next resistance is seen at 0.7183 & 0.7237.
21st April: There is a daily bearish divergence but this does need a break below 0.6769 to confirm. Until then, while the 0.6894-0.6927 area supports I feel there is probably room for one more push higher above 0.7325.
I under-estimated the strength of the bearishness yesterday and while the direction was correct losses actually pushed below 0.7032 to reach 0.6952. While 0.7019 caps there is still a risk of seeing one more push lower to below 0.6952 and to the 0.6894-0.6927 area. I suspect this will support. Thus, for any stronger bearish stance wait for loss of 0.6890 and only then is the downside opened more for 0.6786-0.6805.
17th April: I remain mixed with the conflicting signals from Dollar-Europe and here but if I have any stronger view it is for a weaker U.S. Dollar. Thus to get bearish here I'll want a break below 0.7136 which should generate losses to 0.7032-50 followed by 0.6897-27.
For a full description of how to use the analysis please see the Analysis page of my website. The prior day's set ups for potential trading levels highlighted in the report are now available on the Daily Forecast page of my web site. Yesterday's GBPUSD report provided a solid profit and the trade set ups highlight how to avoid buying into a trend...