In yesterday’s analysis, I expected GU to have a bearish reversal around 1.37 (previous daily high) zone back towards 1.3627 key support zone , which was exactly what the market performed. If you are aware, GU is repeating a similar pattern comparing to the 4th – 6th January, a strong rejection at 1.37 resistance level followed by a strong downwards impulse, could we expect a re-test at 1.3664 minor resistance before further selling pressure steps in pushing price towards 1.3542 support zone? During these sort of range bound condition always pay attention to minor zones. Today’s setup will be determined by the price action during the current Asia session, if there’s more bullish momentum during the Asia session I will be leaning towards bearish bias, vice versa. There are three setups that I’m currently looking at 1. A retracement to 1.3667 for further bearish continuation towards 1.3642 minor support zone ( Bearish )
2. A deep pullback towards 1.37 (daily high) before further sell-off occurs ( Bearish )
3. A bullish rejection at 1.3620 zone pushing back to previous daily high at 1.37 ( Bullish ) However, do not forget the overall trend on the higher timeframe remains bullish . Trade safe. Do follow my profile for daily fx forecast & educational content.