The Daily Forecaster: GBPUSD
Price: 1.5810
Bias: If this is to reach 1.5933-40 then ideally it should do so now… else risk extended consolidation
The underlying MT direction is bullish while the daily bias is neutral. This may indicate price consolidation or an unclear wave structure that needs confirmation. Note key MT support & resistance levels that may break the MT trend or would suggest a resumption of the move higher. It is very important that you consider either bullish or bearish set up patterns in indicators or lower time frame charts to support S&R breaks.
Consider buy set ups at: Follow analysis
Consider sell set ups at: 1.5910-40
| Resistance |
1.5841 |
1.5860 |
1.5882-99 |
1.5933-40 |
1.5985 |
1.6002 |
| Support |
1.5800-10 |
1.5780 |
1.5748-53 |
1.5729 |
1.5706 |
1.5650-65 |
Daily Outlook
This took the alternative outlook yesterday, dipping 2 points below the 1.5731 support. Ideally, this should mean that we see the move higher through 1.5841 and above 1.5882 to reach 1.5899 for a pullback that remains above 1.5830 to then see the upside follow-through to the 1.5933-40 target. From there a deeper correction can ensue. While not expected there is a higher projection at 1.6002 so ensure any bearish set ups are valid and strong.
A move below 1.5800-10 would concern and perhaps suggest continued sideways consolidation with support at 1.5848-53. Ideally it should hold. Only below yesterday's low at 1.5729would risk losses to the 1.5650-65 area at least. This may well imply further sideways consolidation for all of this week and maybe next. Deeper retracement support is found at 1.5602.
Medium Term Outlook
7th February: This hasn't been particularly easy. I remain with the underlying outlook that we should see the 1.6166 high retested. The ideal intermediate target is at 1.5933-40 from where a longer and again complex correction is due. If there is any deviation from this then it's posisble that we're in that consolidation now and this could imply a deeper correction towards 1.5650-65 and even
1.5602. However, until yesterday's low break there still remains the potential for a move to that 1.5933-40 projection... Below 1.5725 plunges us into sustained, confused consolidation |
