British Pound - Look for Weekly Bottom

Discussion in 'Forex' started by FDate_Trader, Mar 23, 2014.

  1. Cycle analysis suggests that this upcoming week (week ending 3/28) will likely produce a weekly swing bottom.

    For those who may not be familiar with the term 'swing bottom', this refers to a price bar (in this case a 'weekly' time frame price chart) that forms a lower-low in relation to the previous week's low and is then eventually followed by a price bar that makes a higher-high. The low must still be holding at the time the higher-high occurs for it to be a valid swing confirmation.

    What this means for us as traders of BP is that we'd want to be careful about adding any additional shorts and start tightening up stop-loss orders for the expected ensuing rally to follow the weekly low (and potential bottom) being put in this week.

    This is not a long-term expectation, however, but likely a mild weekly correction. If weekly prices continue to follow its historical cyclic pattern, weekly prices would be moving lower into mid-April following a mild correction at this time.

    In any event, week ending 4/11 or 4/18 is the next weekly time period where a weekly cycle swing is likely to form following this week.

    :)
     
  2. Its a little early (only Tuesday), but I think you called it right. Nice job.
     
  3. Yes, it's early, but I appreciate your response. :)