GBP/USD Monthly. The present monthly candle despite red to signify a short is what I call an undecided candle due to my specially calculated line that forecasts with pin point accuray lays dead center of the candle at 1.5893 and is dead flat to signify further uncertain direction.This screams warning as to direction so a new candle must clear 1.5893 on a full close basis in order for prices to move higher. However, the 55 day moving average, presently at 1.6497, is falling fast from above. Longs should be cautious as to long term direction until the next candle reveals more information.The range of the monthly candle lies between 1.5629 and 1.6246 with a solid mathematical bottom found at 1.5230. Further bottom supports are found at 1.5607 and 1.5233. The present structure is short but a correction is overdue since the GBP/USD is heavily oversold so longs should be sold with heavy monitor of the 55 day falling MA.
GBP/USD Weekly. The present structure is short yet heavily oversold conditions exist. My specially calculated line above the present candle is found at 1.5880 and is falling along with shorter 5 and 10 day averages. The 55 and 100 day averages found above present prices is about to cross. My highly educated guess is the 55 day crosses the 100 day from above at about 1.5918 to signify a long term short. Bottom supports include 1.5627, 1.5605 and 1.5574.
GBP/USD Daily. The structure is short yet again heavily oversold conditions exist. My specially calculated line is found above present prices at 1.5864 and is falling fast as well as shorter term 5 and 10 day averages. 1.5864 must clear on a full candle close basis in order for higher prices to occur. However, a slightly rising 100 day average above is found at 1.5835, the 253 day average at 1.5891 and the 55 day average at1.5950. Bottom supports are found at 1.5620 and 1.5603.
253 Day Moving Average. Trading days in the United States minus weekends and holidays factor to 253 days and must be a consideration in any long term price analysis due to the significance of mathematical properties of moving averages. The import of the 253 day average is found in the GBP/JPY daily analysis.
GBP/USD Hourly. My specially calculated line is found dead center of the present short candle and is found at 1.5658. This says its what I call an undecided candle in directional terms so the next candle must decide short term direction and must clear 1.5658 on a full candle close basis in order for higher prices to materialize. Longs are cautioned due to the 55 day falling average from above present prices at 1.5622 and the falling 100 day average at 1.5720. Bottom supports are found at 1.5643, 1.5641, 1.5637, 1.5634 and 1.5629.
Monthly. My specially calculated and presently falling line is found dead center of this present short candle at 126.55. The candle is again undecided in directional terms. The next candle must clear 126.55 in order to see higher prices. However, the 55 day average presently sits at 150.68 and is falling fast and is wholly responsible for the present downtrend when it crossed from above the 100 day average at 193.62. Caution is advised as any upward trend must be monitored for the falling 55 day.
Weekly. The structure is short with my line above present prices falling and sits at 126.83. Shorter 5 and 10 day averages sit above present prices and is also falling fast. The 55 day average sits at 125.55 and must clear on a full candle close basis in order to see higher prices. Caution is advised however as the 100 day average sits above present prices at 128.65. This brings the range between 126.83 and 128.65 provided prices can fully clear the falling 55 day average.
Daily. The present doji candle signifies undecided direction more so than a directional change. This observation is found at the location of the 253 day average that sits just above present prices at 125.01. Any longs must clear this massive hurdle in order for prices to move higher. Further, the 5 day average sits just above the 253 day and must also clear as well as the falling 10 day average and my falling specially calculated line at 126.50. The rising 100 day average at 126.51 and falling 55 day average at 129.54 will eventually converge with the 55 day crossing the 100 day from above to form a nice short. My highly educated guess sees this occurence at about 128.35.
Hourly. My specially calculated line sits again dead center of the present candle at 124.66 and is dead flat to signify undecided direction. The 55 day average sits inside the candle at 124.63. Prices must clear both hurdles on a full candle close basis in order for prices to move higher yet caution is advised due to the falling from above 100 day average that presently sits at 125.08. Longs should be sold and monitored for the 55 and 100 day relationship. What may occur based on my highly educated guess is a range will form between the 55 and 100 day averages so advice is play the ranges.
Stay tuned as Brian Twomey again goes Inside the Currency Market.