The Dollar has enjoyed a good run over the last few days and I believe it is time to end it and resume its downward move (Dollar index towards 90). Let us see some pairs now…..
In my interview with Dale Pinker on the 26th of September (YouTube link here) using Ichimoku clouds and showing our viewers a little bit of behind the scenes how they work we said that support was at 1.17-17.20 and we should see a strong bounce at least if not the start of a new upward move to new highs.
With a low at 1.17158 price is now trading a few pips away from 1.18. Resistance is at 1.1875-1.19. Breaking above it will confirm that the downward correction is over. Price remains above the Ichimoku cloud. The daily trend remains bullish in Ichimoku terms.
The pull back has reached the 38% Fibonacci retracement. GBPUSD has reached very important long-term trend line resistance and that is why it pulled back. Short-term resistance is at 1.3455 and next at 1.3535. I warned GBP bulls that they should be cautious as price reached important resistance when it was around 1.3655.
— Alexandros Yfantis (@alexanderYf) September 15, 2017
Now we have witnessed a 300 pip pull back and we could see a new attempt for new highs.
We have pointed out the bearish divergence and the increased danger of a strong pull back. I believe this anticipated pull back or new downward move has started. My view is that we should now start a strong downward move towards 104.
Bullish reversal daily candle. Price has pulled back towards the 38% Fibonacci retracement. I expect it to start moving higher above 0.81 over the coming weeks.
Yesterday I warned through twitter that the daily candle was becoming very ugly (bearish).
— Alexandros Yfantis (@alexanderYf) September 28, 2017
Price is now lower. The upward move since 1.2060 could be over. The price action is corrective in nature as price has an overlapping structure. This would imply that the next leg down towards 1.15 could be starting. It is too early however to confirm this. First sign would be to break below the bullish cloud.
Price is below the Ichimoku cloud and has broken a bearish flag pattern. I have no bias here and no position. As long as price is below 0.7370 trend will be bearish.