GBPUSD analysis using multiple technical tools for confirmation
GBPUSD:Oanda 1D chart analysis : 1) trend 2)MA analysis 3)Oscillator analysis :
1) trend :
we found that market is in an overall intermediate uptrend from the higher time frame and we are also at the end of a minor degree uptrend and in a correction/reversal phase of the minor uptrend. which seems to be a bullish flag and the correction will most likely hold at the 50% fib resistance level which also was a significant support/resistance level before and now is expected to act as support.Also the correction of the uptrend is happening on a relatively low volume which again confirms the correction instead of the reversal pattern.
2)MA analysis :
9 day sma >> sell signal @December 7th , price crossed below the moving average and closed.
14 day sma >> no signal as the price is about to cross the moving average @December 8th.
21 day sma >> no signal.
5,20 sma cross >> buy signal @November 17th 2017 . 5 day sma crossed 20 day sma.
4,9,18 sma >> buy signal @November 16th.
21,3 Envelope >> sell signal @September 21th . overextended market .
20,2 BB >> bands were widened meaning market is entering a volatile state. price is still between higher band and 20 day MA , not a sell signal .
15 Starc bands >> price is around the middle and going toward the bottom band which is a low risk area to buy and high risk area to sell.
14,2,30 KAMA >> price is exactly on the KAMA band and no signals are generated yet ,
3)Oscillator analysis :
10 momentum >> buy signal @November 14th 2017. Momentum line crossed 0 level.
14 RSI >> no signal
14,3,3 stochastic >> sell signal @December 4th , faster line crossed the slower line at around 89 level. no divergence /major signals. (kinda confirms the correction instead of reversal)
12,26,9 MACD >> buy signal @November 10th. not yet any sell signals for the current correction.
Conclusion :
we have an uptrend and we are on the correction phase as we have a lot more confirmation on the correction retracement rather than it being a reversal for the preceding trend.
However the retracement is not yet fully done and our long entry goal is at ~1.33029 - the strong support level which also is the 50% fibonacci retracement for the preceding trend.
so the order is gonna be a buy limit with a trailing stop starting at the support level and moving along with the possible trend line until further signals to take required defensive action.
send me your feedbacks , thanks !
1) trend :
we found that market is in an overall intermediate uptrend from the higher time frame and we are also at the end of a minor degree uptrend and in a correction/reversal phase of the minor uptrend. which seems to be a bullish flag and the correction will most likely hold at the 50% fib resistance level which also was a significant support/resistance level before and now is expected to act as support.Also the correction of the uptrend is happening on a relatively low volume which again confirms the correction instead of the reversal pattern.
2)MA analysis :
9 day sma >> sell signal @December 7th , price crossed below the moving average and closed.
14 day sma >> no signal as the price is about to cross the moving average @December 8th.
21 day sma >> no signal.
5,20 sma cross >> buy signal @November 17th 2017 . 5 day sma crossed 20 day sma.
4,9,18 sma >> buy signal @November 16th.
21,3 Envelope >> sell signal @September 21th . overextended market .
20,2 BB >> bands were widened meaning market is entering a volatile state. price is still between higher band and 20 day MA , not a sell signal .
15 Starc bands >> price is around the middle and going toward the bottom band which is a low risk area to buy and high risk area to sell.
14,2,30 KAMA >> price is exactly on the KAMA band and no signals are generated yet ,
3)Oscillator analysis :
10 momentum >> buy signal @November 14th 2017. Momentum line crossed 0 level.
14 RSI >> no signal
14,3,3 stochastic >> sell signal @December 4th , faster line crossed the slower line at around 89 level. no divergence /major signals. (kinda confirms the correction instead of reversal)
12,26,9 MACD >> buy signal @November 10th. not yet any sell signals for the current correction.
Conclusion :
we have an uptrend and we are on the correction phase as we have a lot more confirmation on the correction retracement rather than it being a reversal for the preceding trend.
However the retracement is not yet fully done and our long entry goal is at ~1.33029 - the strong support level which also is the 50% fibonacci retracement for the preceding trend.
so the order is gonna be a buy limit with a trailing stop starting at the support level and moving along with the possible trend line until further signals to take required defensive action.
send me your feedbacks , thanks !