Saturday, August 20, 2011

Weekly Forecast (FX)

GBP/USD

While GBP/USD has formed a new high this week and invalidates my forecast, I am going to look back to the bigger time frame to plan my next actions.

Monthly and Weekly Chart Outlook:
Short Term Bullish towards 1.6700-750 resistance.
Expect double top resistance hit hard! And bring GBP/USD down to 1.5500 again.

April'2011 High recorded 1.6746, watch it!

Daily Chart


After 5 days of continuous up up up days, GBP/USD finally marked a new high, and on both Thursday and Friday, GBP/USD create a healthy correction, it has corrected to 1/3 on both Thursday and Friday.

Like what I have mentioned earlier, GBP/USD has formed a inverted head and shoulder and the up up move is going to end soon, so... I am gonna ride the north train before the market collapse. :)

I am not able to get a good entry to long, short term bullishness towards 1.6700 region.

4 Hour Chart


Current Support at 1/3 retracement level 1.6450-480.
I aim to hunt for Long opportunity when the wild cat touches EMA50 on 4 Hour chart, which is a strong support at 1.6380-400.

EUR/USD forecast... stay tuned.

5 comments:

  1. How did you see the inverted H&S on the daily?

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  2. hi Gerald, marked with blue:

    https://lh4.googleusercontent.com/-FKR5EZZTvS4/TlC900pcfRI/AAAAAAAAFQw/wV1XhHwNJ3Q/s912/08-20%252520GBPUSD%252520D.jpg

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  3. As to what I understand, when the market is a bullish trend, we only look for H&S. If it is a bearish trend, we only look for inverted H&S. Pls double confirm with your sifu JC. I may be wrong.

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  4. Gerald,

    Hope that we have a ''tag'' function here in blogger :)

    Just Google-d:
    http://www.chartpatterns.com/headandshoulders.htm

    So glad that you being my senior and still so humble, and you are right!

    "The head and shoulders pattern is generally regarded as a reversal pattern and it is most often seen in uptrends."

    Up-trend or downtrend depends on the timeframe we are trading.

    Thanks for coming, and thanks for your enlightenment! :)

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  5. NP. We will always learn from people around us. G'luck!

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