GBP:- Monthly trend bearish, Weekly trend bearish, and 3-day 'sell' cycle.Expectation that any further moves down this week on break of support would be towards December lows.
Today:- 2-day sideways movement and 3-day cycle has caught up with price, this can send the market down on Wednesday.
Do not trade longs below support.
A bounce off support today would be a swing back to the 3-day highs and 5-day 50% level, and easily continue higher.A bearish weekly pattern would need to stall and consolidate below on Wednesday (5-day 50% level), and then sell down on Thursday and follow the trend down into Friday.
When we look at support and the 90 pip low, they both match around 2.0105.
This is a perfect Risk level:- because you will know the trend, you'll know whether you are right or wrong whichever way the market goes.
It's the best entry because it is closest to your stop loss point.
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