GBPUSD Week 38
Although the EURUSD present a very nice opportunity yesterday with a clear order block, GBPUSD could be a bit more tricky to find the correct entry level.
Remember last week we made a swing low. What is of interest when a swing low is created?
The open/close/high/low of each of the 3 bars creating the swing low.
So on chart 1 I laid out the necessary support levels.
Next: We wait for price to hit a support level in a specific kill zone: price hit the level during London open. The level is also close to the 50% equilibrium of the consolidation. See chart 2
Next: we wait for a retrace and an OTE in obvious swing points.
The LO did not retrace enough for a clear OTE pattern, but on the 5 MIN, there was a nice OTE during NYO. See chart 3
Next: profit targets. the profit targets are determined using the fib tool using the dominant price swing. 127% extension was reached. See chart 4.
Now on for today. We have a slew of news coming at us, but looking at chart 4, you can see a nice 4H order block resting at the 100% swing point, which happens to clear the stops after that (engineered, wrong head title, yeah right

) spike of yesterday evening.
So 1.6233 is a level I watch before or during the GBP news announcements during LO.
The next (longer term) take profit areas are:
GLGT