Yellow zone acted as support and the pair went higher as expected. It did not quite reach the target area (green zone) because it stalled when it reached the range of the initiation period (i.e. range of the first week of the month). That signaled a retest of prior week high and so it did. Closed the week above midpoint.
Next Week Outlook
Upside target area (green zone) is still in play. Reaction at that area will tell us if further continuation to the upside is possible.
Best case scenario for long side is that the pair does not even pause at the green zone, that implies 1.63+ is in play.
If the pair stops at the green zone with a 1-2-3 sell visible on 4 hour, previous week low (yellow zone) will be tagged quickly and an attempt to run back down to 50% downside expansion target (red zone) is likely.
Lawrence's Comment
Recap
Y-0 failed to act as support and turned into resistance. Channel break down led to test of the start of the channel which is Y-2. Found support at Y-2 ...
For more information about this report please refer to the Market Bias Informant pageTrading day for Forex symbols start at around 5 pm ET depending on Daylight Saving Time schedule
GBPUSD Jan 24th to 28th Outlook
Recap of Last Week
Yellow zone acted as support and the pair went higher as expected. It did not quite reach the target area (green zone) because it stalled when it reached the range of the initiation period (i.e. range of the first week of the month). That signaled a retest of prior week high and so it did. Closed the week above midpoint.
Next Week Outlook
Upside target area (green zone) is still in play. Reaction at that area will tell us if further continuation to the upside is possible.
Best case scenario for long side is that the pair does not even pause at the green zone, that implies 1.63+ is in play.
If the pair stops at the green zone with a 1-2-3 sell visible on 4 hour, previous week low (yellow zone) will be tagged quickly and an attempt to run back down to 50% downside expansion target (red zone) is likely.
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