The Pound
versus the Dollar has been in a consolidation since last week between the
1.5560 zone as support and the 1.5678 zone as resistance. The round number level
of the 1.5600 has served as a middle point in the consolidation from where the
price has been oscillating up and down. On the one hour chart we can see that
the volatility has been high, due to the relatively long real bodies on the
candlesticks and long shadows in both directions. During this type of price
action it is very difficult to trade due to the fact that the pair has not
taken a clear direction. However, this high volatility periods could be useful
for scalping trading, but it is also risky. To the upside, the 1.5700 level
could act as resistance and to the downside the 1.5500 level could act as
support.
Excellent analysis, you hit the essence.
ReplyDeleteGood analysis.
ReplyDeleteA perfect Trumpet pattern!
ReplyDeleteThis consolidation has provided great opportunities for scalping but it has to end sooner or later.
ReplyDeleteInteresting analysis!
ReplyDeleteGood analysis!
ReplyDeleteExcellent analysis. Thank you.
ReplyDeleteVery useful analysis.
ReplyDelete