GBP trading around Quarterly support levels (major support)However, price is trading below all higher timeframe 50% levels and price is in a 3-day 'Sell' Cycle.
Any further weakness this week and market-path is to move down towards the lower Weekly and Monthly channel lows, as shown in the chart (above right)
Expectation for any continued down move this week was for price to move up and re-test last Week's Thursday breakout @ 1.9530, and then move down into channel lows:- Day trading exit around 90-120 pips...
We can see yesterday hitting Resistance and moving down exactly 90 pips, before Buying support came in, however there is still a 120 pip range to look for completion on Tuesday...
The 5-day 50% level should be used as a Trend guide on Tuesday, with the Expectation that 120 pips will complete...Note: Quarterly support and a lower Weekly open, if the market is going to move higher this week then it will be confirmed with the breakout of the 3-day high 1.9539.
This can easily happen, and a breakout would send the market back towards the 5-day highs @ 1.96510...
High Probability pattern:- 120 pip completion down on Tuesday, but then rising upwards from a Spiral low and then breaking the 3-day high...(Wednesday)
This will also Match the Quarterly low support zone...1.9429
Otherwise trade with the Trend, and that is down......
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