Type:
Bearish Momentum
Key Levels:
Resistance: 1.2563
Pivot: 1.2514
Support: 1.2432
Preferred Case:
On the H1, price is moving within the descending channel and is below the ichimoku cloud which supports our bearish bias that price will drop from our pivot at 1.2514 in line with the overlap resistance to the 1st support at 1.2432 where the swing low support, 100% fibonnaci projection and 78.6% fibonacci projection .
Alternative Scenario:
Alternatively, price may break through pivot structure and rise to the 1st resistance level at 1.2563 in line with the swing high resistance and 78.6% fibonacci projection
Fundamentals:
We have a mixed bias on the British pound futures since the focus on the pound remains on the political front, with Downing Street indicating no plans for a cabinet change and a resolution to the North Ireland issue likely to be disclosed next week.
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.