Weekly Trend direction: Bearish
Weekly trend reversal level: 1.6470
Key G7 resistance levels: 1.6035, 1.6120, 1.6200, 1.6300
Counter-trend opportunities:
Strategy: Whilst below the weekly trend reversal level sell rallies to resistance levels after an entry signal
Today's trade suggestion:
Sterling continues to be the weakling, and we reached as low as 1.5800 last week. We’ll continue to look to sell
the pound into rallies, but as we have already seen “above average” weakness against the dollar, we’ll allow for a
bit of a short squeeze before looking to sell. The key resistance levels are 1.6120 and 1.6200, so be patient and
wait for a squeeze higher before selling. We might even see the pound racing up to 1.6300 (the 78.6% level)
before we top out. Target for short positions from higher up are 1.6000 and then 1.5800. It’s probably a better
bet to be selling euro’s this week.
Update: With the Non Farm Payrolls report coming out at 8.30 EDT today, it’s best to stay out of the market due
to extreme volatility and slippage by the brokers. If you must trade, then the strategy remains unchanged from
Yesterday. I’ll update the report again on Monday!
Summary:
Watch for opportunities to sell Sterling into rallies to 1.6120 and, more especially, 1.6200. Target 1.6000 and
then 1.5800
Weekly trend reversal level: 1.6470
Key G7 resistance levels: 1.6035, 1.6120, 1.6200, 1.6300
Counter-trend opportunities:
Strategy: Whilst below the weekly trend reversal level sell rallies to resistance levels after an entry signal
Today's trade suggestion:
Sterling continues to be the weakling, and we reached as low as 1.5800 last week. We’ll continue to look to sell
the pound into rallies, but as we have already seen “above average” weakness against the dollar, we’ll allow for a
bit of a short squeeze before looking to sell. The key resistance levels are 1.6120 and 1.6200, so be patient and
wait for a squeeze higher before selling. We might even see the pound racing up to 1.6300 (the 78.6% level)
before we top out. Target for short positions from higher up are 1.6000 and then 1.5800. It’s probably a better
bet to be selling euro’s this week.
Update: With the Non Farm Payrolls report coming out at 8.30 EDT today, it’s best to stay out of the market due
to extreme volatility and slippage by the brokers. If you must trade, then the strategy remains unchanged from
Yesterday. I’ll update the report again on Monday!
Summary:
Watch for opportunities to sell Sterling into rallies to 1.6120 and, more especially, 1.6200. Target 1.6000 and
then 1.5800
