GBP/USD Continues To Tank – FX Daily Analysis 2/24/16
Still Looking For Second Push Down In EUR/USD
The EUR/USD is in a rather simple position right now. We carved out a 24 hour range today after making a first push to the downside yesterday. After going into a range for 24 hours I was going to drop the cycle bias and go back to trading the manipulation points to both sides of the price. According to the rules we lay out in the online forex course, a market cycle can last 3-5 days. What that means is we can have a delay in the cycle before the next push continues. As such I will continue to look for the second push to the downside and I have 2 upper manipulation points from which I will look for the stop run short. I would also consider a backside short off the backside of the breakout point which is currently yesterday’s low around the 1.0990 area.
Pound Continues To Tank
We started off the month with a very tough month and we were in negative territory. Over the last week we have seen things get back to normal and the GBP/USD produced another full profit trade today. We created a stop run and confirmation long from the previous day’s low. This trade hit a full take profit by 2-3 pips before making another push down.
If the first push to the downside was not 1.5X the ADR then I would be calling the GBP/USD a second push to the downside and and I would look for the third push to the downside today. Because that first move was so much larger than the ADR it throws up the starting point for the cycle which in turn means I continue to trade with an open directional bias. Right now we don’t have any lower manipulation points to even trade from. Therefore we are essentially only looking for the continued push down because we don’t have a lower level from which we could go long from. At this point we have only one upper manipulation point from which I would consider a stop run short. As I mentioned in the members daily market preview, today is going to be a day where we will likely see new levels develop as things progress. For those who are members, be sure to watch tonight’s preview as I develop the possibilities further and what I will need to see for levels to develop.
Forex Market News For February 24th 2016
US New Home Sales 10:00 AM Eastern: Home sales, including pending, new, and existing are all becoming more important. That importance has topped out and faded slightly but they are all still moving the market. As far as follow through is concerned, New Home Sales has seen really good follow through in the direction of the spike when a 40K+ deviation is hit from the expected number. For this month 520K is the expected number.