Expectation that GBP is heading down towards the December lows based on the Weekly trends @ 1.9746
Around December lows, and expectation that price will be supported and will look for a rotation back upwards towards the January 50% levels in 2008.
This week I wanted to trade the trend down into the December lows using the 5-day 50% level, but this week hasn't seen a reversal back into those levels.
A couple of times I used support as BUY swings points, but after some support on both occassions it failed, and has continued down towards December lows.
We have the same pattern as before:- a breakout of the support and expectation that price will move down into next support, which also happens to match the December lows.
Previous support 1.9889 can often become resistance....
In conclusion:-
I would like GBP to head down on Friday, find suport and then swing upwards towards the 5-day 50% level.
There are two matching support levels around 1.9746-9, which I think can provide a robust swing point for a major reversal upwards.
For any move down I would like to see the R90 'spiral-top' and then come down back under yesterday's support.
Trading shorts above 1.9899 is open to risk. (R90 spiral and yesterday's support)
No positions as yet.
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