An important week - don't read the news, read the signals!
Weekly:
- Ichimoku is bearish, but Kijun Sen drops lower to 1,2547. This is the first and most important key level for those looking for a reversal.
- Price is still held within the precise range (on candle closing basis) marked by Chikou Span peak and bottoms: 1,2180 - 1,2655
- Heikin-Ashi may lose its bearish bias this week. -> Watch haDelta!
- MACD is still above its signal line: no bearish continuation, rather consolidation.
- EWO still has some bullish divergence
Daily:
- Ichimoku setup is neutral with some bearish bias. In fact major averages are still flat and located at same equilibrium level around 1,2350. Market is not trending. Kumo is this flat line ahead.
- Heikin-Ashi showed loss of bearish momentum already last friday. It seems to print a doji candle today which is further indication for a local bottom and reversal. haDelta and haDelta+ are ticking higher to their center lines.
Strategy:
1. Those who are short short consider cutting position and take profit.
2. Experienced traders may try a swing long position with maximum 0,5-1 volatility adjusted risk unit size position to shoot for an 1,2350 - 1,2400, or maybe even to a 1,26 target.
Note: I don't think official Brexit trigger this week (Article 50) itself shoud have any more negative impact on GBP. It is well known, expected and discounted in price.
- Ichimoku is bearish, but Kijun Sen drops lower to 1,2547. This is the first and most important key level for those looking for a reversal.
- Price is still held within the precise range (on candle closing basis) marked by Chikou Span peak and bottoms: 1,2180 - 1,2655
- Heikin-Ashi may lose its bearish bias this week. -> Watch haDelta!
- MACD is still above its signal line: no bearish continuation, rather consolidation.
- EWO still has some bullish divergence
Daily:
- Ichimoku setup is neutral with some bearish bias. In fact major averages are still flat and located at same equilibrium level around 1,2350. Market is not trending. Kumo is this flat line ahead.
- Heikin-Ashi showed loss of bearish momentum already last friday. It seems to print a doji candle today which is further indication for a local bottom and reversal. haDelta and haDelta+ are ticking higher to their center lines.
Strategy:
1. Those who are short short consider cutting position and take profit.
2. Experienced traders may try a swing long position with maximum 0,5-1 volatility adjusted risk unit size position to shoot for an 1,2350 - 1,2400, or maybe even to a 1,26 target.
Note: I don't think official Brexit trigger this week (Article 50) itself shoud have any more negative impact on GBP. It is well known, expected and discounted in price.
