FOREX Chart Of The Day: GBPUSD Point Of Control
#GBPUSD is on our watchlist this week due to the weakness in the GBP and the seasonally bullish period for the USD.
In this video, we identify last week’s point of control level.
Watch the video to learn more…
Hi, and welcome to this Blueberry Markets video update with me, John Kibbler, Head Currency Analyst.
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In this video, we’re going to look at GBP/USD and look at what could happen with the currency next.
We have seen a nice weekly bearish candle. On the strength and weakness chart, we looked at the fact that the GB Pound was the biggest loser of last week, and what we had seen from the US Dollar last week was a slight increase from that weakness. We are starting to see a potential reversal in that US Dollar weakness, and we’re seeing some strength coming back into the markets. And because GB Pound was one of the biggest losers of last week, we could see GBP/USD dropping a little bit further.
Going into the chart, we can see that nice bearish weekly close. We’ve already broken through that weekly, which is quite nice to see. If I go to the four-hour timeframe, we can see that the price is making lower lows now; we had this nice move down the market, then consolidated through this period, and has now broken and formed a new lower low – that is good to see. We’ve got a nice lower low, lower high pattern coming through at the moment.
Now, the point of control of last week was 1.3579. We could anticipate the price coming back and retesting this level of weekly point of control, and if we get to here, we need to watch how the price reacts. If the price gets to this point and on the lower timeframes, we start to see changes of the trend, and we start seeing lower lows and lower highs form, and then that’s a good opportunity to trade this lower in line with the four-hour trend.
If price gets back to that, look for that change in trend on the lower timeframe. We also have some other lows of interest, which is this area here where the price has broken out. We may not get to the weekly point of control, but this is my most ideal level to look for that short position. However, we may only retest this previous structure low area and then continue to the downside.
If the price gets into one of these two zones, I’ll be interested to see if it gives us a bearish candlestick on the four-hour. Go down into your 15-minute timeframes and look for that change in simplicity. If you have it, look for the short opportunities, and we’ll see how that works.
GBP/USD on the list to go short, there’s a really nice level at 1.3579. Watch out for that level, and I’ll speak to you soon.
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