In today's blog post I want to take the time and talk about my recent trade which was long GBP/USD. This trade was based on a market model or you can call it a fractal pattern (see Figure 1) that cable has been following since the start of the sell off from 2014 highs. Now, even though I got out of this trade relative fast the upside momentum should prevail if we take in consideration the seasonality cycles of GBP/USD which has the tendencies to strengthen during the summer time period and post a major top by beginning of August. (see Figure 2)
Figure 1. GBP/USD Fractal Map

However short term we can still move to the downside as current market flow is negative. Current price of 1.5660 which is a pivot can provide support and next major area which is another important pivot stands at 1.5550 close to the big figure 1.5500 which should provide support and see a ramp up at least towards the current high at 1.5930, however idea target would be 1.6200 to match the fractal map which retraced all the way to 61.8% fib retracement.

Figure 2. Pound Seasonality Study


Best Regards,
Daytrader21
Translate to English Show original

Since you are not logged in, we don't know your spoken language, but assume it is English
Please, sign in or choose another language to translate from the list.

– or –