Breakout in the sense that GBPUSD broke previous session low. However you really need to be in well above that level, ideally that mini ‘double top’/supply are, not when price is contesting previous low.
Target 127.2 hit, with 141.4 next. 161.8 being ‘hitting the jackpot’ level!
GBPUSD indeed hit 161.8 extension, though quite convoluted as it retraced back up to 78.6 extension (the rejection at 50% and 78.6 levels can be clearly seen.
15 Minute Chart
5 Minute Chart
The previous session low very close to the previous weeks low didn’t help. I don’t usually go after the 161.8, as its usually more of a bare knuckle ride, as opposed to ‘set and forget’
Be tricky to have got into the first pullback due to Sunday market open.
As for the second pullback we can see some absorption. If volume starts to build below, and we see a pullback or fresh demand, then it could go. Its not one automatically fade until we have followed the price action.
It broke that supply (in fact an early supplier had been taken out and we can see the pullback).
Supply came in on AUDUSD (circled area), got a nice pullback and squeeze to break the previous session low and go to our LT1 and LT2 targets (127.2 and 141.4 extensions of previous sessions high & low.
18 pips. Not brilliant, but good enough.
The blue horizontal lines are major option levels on AUDUSD at 0.7750 (520 mln) and 0.7800 levels (418 mln)
EURGBP. Managed to go short when I should have been long. Went straight into a small demand zone (admittedly would need to go down to one minute chart in order to see it). Entered too late too, thats what happens to ‘Johnny Come Lately’s’ lol.
The result a £106 loss as price move back and took out my stop which was above the #inverse range low line.
Bad idea, pound has been stronger than the Euro of late, and apparently the Bundesbank tend to buy EURGBP on the last day of the trading month.
As you can see however EURGBP eventually sold off. Also note how demand becomes supply.
$GBPUSD 127.2, 141.4 and 161.8 targets of previous session range hit
$EURUSD went to HT1/HT2 target areas 127.2 and 141.4 extensions of previous sessions range
Just some levels I’ve been looking at on the EURAUD chart. Really have to go down to the small time frame charts to see them:
One area has just been broken through though, as price broke through the previous session low, then went for my ‘trademark’ 127.2 and 141.4 extentions for targets 🙂
Not been looking at EURAUD for a while, though its one of the best movers and quite a transparent pair to trade, though the spread can be quite how with many brokers (IG etc)
Well you would have been up about 30 pips on my USDJPY Demand zone post last night. Due to these ‘stacked’ demand zones.