Can Bulls Flip GU "On Its Head" @ 38.2% Level?

2 Feb

Last week we saw GBPUSD attempt to Break Above the 1.25 Resistance Zone that its been struggling with since November 2024 and was sent back down underneath following the Fed's decision to Hold Interest Rates.

We can see that Price so far seems to be following a Head & Shoulders layout where Price now is declining down to the Low that formed the "Left Shoulder" @ ( 1.23745 - 1.23518 )

What makes this Price Range so favorable is that if you take the Fib Retracement Tool from the Low of the "Head" @ 1.20991 to the 2nd Touch of the "Neckline" @ 1.25232, the 38.2 % Retracement Level lands right at the potential Support level of the "Left Shoulder"

-If Price finds Support at this level, we can suspect the Low to form the "Right Shoulder" then for Price to work back up to the "Neckline" for a Break and Close for Confirmation of Pattern to then look for more Buying Opportunities!

*Price Breaking and Closing the Neckline, signaling Confirmation of Pattern, will deliver a 90% Success Rate to the expected Bullish outcome.

*Watch for Increase in Volume after Price is Successfully Supported by Low of Left Shoulder and RSI to maintain Above 50!

Fundamentally,

GBP:
Final Manufacturing PMI - Monday
Final Services PMI - Wednesday
Construction PMI/Bank Rate - Thursday

USD:
ISM Manufacturing PMI - Monday
JOLTS - Tuesday
ADP Non-Farm Employment/ISM Services PMI - Wednesday
Unemployment Claims - Thursday
AVG Hourly Earnings/ADP Non-Farm Employment/Unemployment Rate - Friday

3 Feb

Pesanan dibatalkan

Price has opened this week Below the Support Area of the expected "Left Shoulder" taking away the validity of this set-up.

This leads me to conclude USD could see quite a bit of strength after all the talk about Trump's Tariffs on Canada, Mexico and China coming back into the spotlight.

-No Longer looking for a Reversal Setup-