OK, the below chart has a lot of lines on it that won’t make much sense since it was my own working through potential moves. With that said, here’s what I’m looking for. With the GBPUSD hitting the lowest level since at least 1994 (as far back as tradingview.com data goes on the charts) it is likely to see a reversal pending in the next few weeks. Last week I mentioned how I feel the dollar is poised to go slightly higher until reversal/correction back down. So, here’s a quick breakdown of what I’m watching for.
Either way, my long TARGET 1 (conservative) is 1.41, with stairstep targets up from there.
AGGRESSIVE NOW : We may have broken a trending pennant down, although a weaker channel indication than the larger range-bound channel, we could see our reversal up in the VERY near future, price action will confirm and entry could provide itself around 1.22. We have also concluded a weak 3 drives down.
BEST CASE: A continuation down in the GBPUSD to roughly 1.12, lining up with the projected Fib ‘0’ would make a 0.618 correction at a strong resistance point. (1) This could line up with the parallel, range-bound channel (stronger signal). (2) Provide a much stronger channeled 3-drives down, AND (3) if timing is right, give us divergence. I’d still place my TARGET 1 at 1.41 to bank some pips (which i also used to line up the 0.618, thus giving me the best case 1.12 entry). You can also look for a short along the trend channel, maybe around 1.26 to pick up a few pips on the way down until we find a reversal. This doesn’t fit my trading strategies, so I probably won’t be doing that as you’re blind-stabbing at a price, but for the antsy, it’s an option.