Published On: Thu, Mar 2nd, 2017

GBPUSD tracking negative Keltner channel lower

InstaForex

Background


The importance of the capping of the topside by the 13-day moving average was emphasised by a strong move to the lowest levels for six weeks and the posting of a fourth down day in a row. In fact selling pressure accelerated and the scope of the moves mean that intraday sentiment is oversold. The potential for a reactive move is growing but studies are clearly negative as evidenced by the tracking of the lower end of a declining daily Keltner channel.

Management and risk description


A move to 1.2247 means the stop can be lowered to break-even or better.

Parameters

Entry: sell in 1.2280/85 area and at 1.2302.

Stop: 1.2342 bid.

Target: 1.2247, 1.2222 and 1.2194.

Time horizon: intraday, closing 1600 GMT.

Four down days

Oversold

Long term

Source: all charts CQG. Create your own charts with SaxoTrader; click here to learn more 

– Edited by Gayle Bryant

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