Happy new week fam,
How was your weekend?, seeing your face smile definitely tells me you had a great one.
Now…, on to the third week of October. Let’s go on to the market and see how we could maximize this coming week
1. GBP/USD
This should be the dirtiest chart I have ever drawn (lol), I apologize for that. There are so many details in this chart, that I couldn’t design it any simpler.
If you zoom out to the daily charts you would see that price just bounced off the third resistance level (1.32564) of a descending channel. Friday’s candlestick closed with a bearish engulfing pattern.
On the 4 hours chart, price is resting on a key support area as seen on the chart above 1.31446.
My bias is:
I will be waiting for a breakout from the current support level on the 4 hours chart, and if we end up selling this pair, the next support level should be 1.30549.
There is also a slight probability that price could bounce off the present support level, and head back up. We always have to work with probabilities every time we see a good setup, because as we know, there is no 100% full proof analysis.
2. GBP/JPY
Analyzing GBP/JPY from a daily time frame, you would observe that mid last month, there was a resistance breakout (146.411) from a descending channel. After which price spent the better part of the last three and a half weeks forming a pennant.
Analyzing the 4 hours chart, price is currently resting on a key support level (146.166). A breakout from this support would definitely send price down to the next support level (146.300).
There is also a 50% probability that the bulls may come in and force price to bounce off the current support level and head back up above 148.206.
Lastly,
let’s also remember that it’s a Sunday/Monday and as Wyclef Jean once said it:
“say what, say what,…. anything can happen”
I personally do not pay much attention to the market on Sunday/Monday’s, I only start taking Monday’s seriously when it’s getting close to the end of the U.K session.
That’s all for today guys, do stick around for more daily analysis during the week.
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Do have a grand week ahead
