I was bullish on GBPUSD for Friday (tradingview.com/chart/GBPUSD/jVWkHUWB-06102023-GBPUSD/) it made a nice up move initially as per levels; nicely hitting the level then sold off for NFP; down to below strong support, killing the stops, before a 150pips rally.
The sell off is a reaction to the above expectation NFP which is negative for the markets but obviously the market think the data is crap and thus the rally. And price nicely stalled at the resistance and start to go down slowly.
Overall the weekends, some negative news happened and market gapped down over 40 pips to the DBZ but has since recovered 20 pips. Where next?
Weekly price action IMO is bullish, pointing to a near term low. Friday's price action is bullish also and today's gap down seem to be a normal pullback. Of course, it is too early to tell the full impact of the news. So European session should give a better idea.
But overall, based on price action, looking for a possible move lower first, likely on fear and also to create a fake impression of something major and suck in the late bears but market to recover strongly after.
The sell off is a reaction to the above expectation NFP which is negative for the markets but obviously the market think the data is crap and thus the rally. And price nicely stalled at the resistance and start to go down slowly.
Overall the weekends, some negative news happened and market gapped down over 40 pips to the DBZ but has since recovered 20 pips. Where next?
Weekly price action IMO is bullish, pointing to a near term low. Friday's price action is bullish also and today's gap down seem to be a normal pullback. Of course, it is too early to tell the full impact of the news. So European session should give a better idea.
But overall, based on price action, looking for a possible move lower first, likely on fear and also to create a fake impression of something major and suck in the late bears but market to recover strongly after.
Note
As given, market hit the buy level and rallied over 70pips. Congrats to all who followed!
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Join me for free on Patreon (patreon.com/fademeifyoucan) to receive my daily FX and indices trading plan. DM me to join my new group to learn all my trading levels and to trade together.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.