It is astonishing how fast currencies can move without a warning. At 1.63, 2 months ago, everything looked just fine for the sterling. It went into mayhem mode after breaking down the blue 4 years support line also breaking the yellow support level. The momentum was overwhelming despite several positive divergences. This shows how useless the indicators can be on a real momentum move. I have been watching the blue support line for a very long time but I was expecting an upwards move to complete the triangle by touching the red upper resistance for the third time before coming down. It didn't. I think the ultimate target of this move is 1.35ish but that won't happen before this down wave takes a breath.
On the short term, the first green channel has been broken even further down with strong momentum. It has been trying to break through it since then for the third time. It is close. However, the blue channel can be the potential for the major downward wave but it needs a hit to confirm. Hope it helps...
No comments :
Post a Comment