GBP following the overall trend of the monthly timeframe DOWN, and it's trading below all timeframe 50% levels...As with the case in Index future markets, the trend is defined by the higher timeframe 50% levels, but around certain daily and Weekly levels there are Support zones.
These Support zones have a random outcome, meaning they will provide support but the follow through doesn't always eventuate...
Tuesday Provided support
Wednesday Provided support
Thursday:- Technically everything is weak, and there is no suggestion of any upside moves. The only thing that favours an UP move is the slight 'rise' in Friday.
If that's the case then Wednesday lows should be level the that traders should refer to as a Trend bias:- any upside move is limited to 90-120pips...
Each market has it's own Ranges that can be used effectively... I like to use the 44 point range in the SPI, as a 'Money pattern' , and the same range can be used effectively in other markets.
I've mentioned previously the Ranges in GBP:- 120, 90, 43, & 31 pips......
Tuesday Support moved up 43 pips and reversed down, Wednesday support moved up 43 pips, and reversed down, and the level I want to define GBP on Thursday is the 43 pip low @ 1.95810
If the market is going to move up on Thursday, then it aligns with the 120, 90, & 43 spiral lows, and also the Wednesday low....
If it breaks lower I know that the market is heading lower....
The same pattern on Tuesday when I mentioned that price was trading below the 5-day 50% level and coming down from an 120 pip spiral top.... as price was moving down into Tuesday's low after the breakout of the 3-day cycle, each 43 pip spiral top allowed traders to enter the trade, or to manage the trade effectively.
Once profit objectives are reached, and the daily trend is defined by the Weekly Trend, there is no reason to trade again until the next day.
That's why I always favour a partial exit around these ranges to minmise Risk regardless of which market is traded. Then it's up to the trader to hold the trade as long as possible..
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