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Friday, February 05, 2021

I think it's time for an agressive and unexpected push down

I think it's time for an agressive and unexpected push down

GBP/USD OANDA:GBPUSD

I have drawn in green and red the underlying parabolic trend barriers that the price has been following.
We can clearly see that both curved trendlines have interjected each other, signaling the end of the structure.
I think the new structure will begin to the downside because the green line has been broken but not the red one.
There is also an ascending wedge that has been broken to the downside and price is now retesting that area.

I noticed also that the RSI has been respecting these support and resistance zones very well, so I put them in if it could help some of you get a better entry or exit when combined with a smaller timeframe analysis.
I noticed also that the past week, pretty much every forex pair has been going up, so that may be big money putting money into the forex market; and my theory is that they will start entering their positions at the beginning of next week since today was NFP day.
(every first Friday of the month, the US releases important fundamental data on employment and such that greatly affects the market. It is called Non-Farm Payroll) and generally you don't want to trade during that Friday because no one knows where the market will go.
So it was risk OFF because of NFP and next week it will be risk ON. these are also terms that everyone should be familiar with. :)
Anyways happy trading



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