GBP/USD long from demand zone

8 thg 8, 2018

I'm looking at a long from the area Pound/Dollar is in right now to the 1.31 supply zone. COT Data suggests that the GBP could be turning soon and that also is taken into account for this trade. Commercial traders have increased their net long to over 60,000, taking profits as the Pound has been taking a beating, while large speculators are net short about 50,000 and have actually been increasing their shorts along the way. Large speculators are wrong about the markets almost all the time and tend to add to short positions as price continues to fall. Using knowledge of how commercials traders are positioned gives great insight for predicting possible future movement. Furthermore, doing the opposite of Small Speculators can prove to be valuable as they also tend to be wrong a majority of the time. The arrows represent possible scenarios that may occur in the future.

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8 thg 8, 2018

Ghi chú

That daily demand zone failed, partially due to a stronger weekly demand zone. There is a daily demand zone at 1.28370, which could be a possible buy area. Or, the weekly zone starts at 1.27806