Another question (What a shock I know) I have posted a Daily GBP/USD chart and wondered if I could get some feedback on it. On the chart below and if you watch this pair as of the last 2 weeks or so, it has been a constant and daily up and down battle.
The blue lines are the top of the channel that is in a downward trend off the 2.0397 high of 3/24/08
The red lines are the ever shrinking ping pong match that we have seen transpire ever since the 4/17/08 channel breakout. We see clear testing of supply on the top of that channel and we also see the range of movement starting to get to the point of constriction where little movement (i.e. elbow room) is in there to make a play.
My consideration is that this pair will indeed breakout to the upside farily soon, but I'm still humble enough to be skeptical of it and not 100% sure that I am reading it the right way. It appears to be basing, but with little signs of long tails to show testing, or long wick bars to show attempt to go up with extreme selling going on, this is a tough nut to crack. Their just are not clear signs to look at. Add into it the fact I just learned a few days ago that at month end, inventory build-up or book tidying may be taking place- makes the pond a little more muddy.
I'd like to learn from this chart, maybe someone sees something I do not on it-to someone it may be clear as crystal of what is transpiring, but since I have just recently moved into the longer term, zoom out, phase of my trading, I have yet to see something like this.
Thanks,
Aaron
gbp_daily_ping.jpg