By Admiral Markets
Currently we see a de-risking prior to the German Election on Sunday. The GBP/USD is trapped withing the engulfing master candle (candle that traps subsequent candles within it’s range) which acts as important support and resistance. The price is dropping possibly targeting the POC 1.3520-35 (38.2, D L4, ATR pivot) and possibly the POC2 1.3465-75 (D L5, W L3, 38.2, historical buyers). The price could bounce from POC zones towards 1.3615 but have in mind that 1.3615 needs to break for further up towards D H4 level. The POC2 has a stronger confluence that the POC1, however and it could pose an even better opportunity for bulls.. The drop below 1.3460 could put the pair in another bearish retracement wave towards 1.3345 zone.
W L3 – Weekly Camarilla Pivot (Weekly Interim Support)
W H3 – Weekly Camarilla Pivot (Weekly Interim Resistance)
W H4 – Weekly Camarilla Pivot (Strong Weekly Resistance)
D H4 – Daily Camarilla Pivot (Very Strong Daily Resistance)
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D L3 – Daily Camarilla Pivot (Daily Support)
D L4 – Daily H4 Camarilla (Very Strong Daily Support)
POC – Point Of Confluence (The zone where we expect price to react aka entry zone)
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Article by Admiral Markets
Source: GBP/USD De-risking Prior to the German Election
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