Transcript of Video
From Forex Traders Daily, this is your daily analysis with Ross Mullins, live from Richmond, Virginia.
Hello everyone, this is today’s video analysis for June 13, 2018. Today we’re taking a look at the Greater British Pound versus the US Dollar [GBPUSD] for today’s trade analysis.
It’s important for me to recognize of course that we have significant news out of the US today. Coming up, 8:30AM Eastern US time, PPI information out of the US. Crude Oil Inventories at 10:30AM. And then very important to remember is the FOMC, interest rate news, and press conference coming up at 2PM, 2:30PM Eastern US time today. A lot of news out of the US that could impact all of the US currency pairs, including the GBPUSD.
We are challenging support right now. What I want to look at is a pink-shaded area that sits right around 1.3325, 1.3305. Sitting down here towards the bottom of the chart. Let’s follow it back in time. I want to go all the way back here to the left-hand side, where these circles are on the chart. The blue circle most importantly showing support into this same zone. The pink-shaded area. Bottom of the black box. Blue circle is that pink zone, 1.3325, 1.3305.
Black circle also shows congestion, support around that same level. So, we know it’s a historical level of support, resistance, and congestion. Now let’s zoom it in on current time a little bit more. And you could see even in recent days. I’m going to go in one more time. Even in recent days, the past couple of weeks through May, we saw support on top of it for two or three days. Broke underneath it. Found four days finding resistance under the pink zone. Now here we are again.
So, we know historically and even pretty recently we have seen some support, resistance around this pink-shaded area just above the 1.3300-handle, which is obviously a significant price point to begin with. But we could know that there’s historical action around here as well. Underneath it of course would return to more of a bearish bias. If it breaks through 1.3300, we see some positive news for the US or positive sentiment for the US, let’s look for this to break down 1.3305, 1.3300, and begin moving lower towards of course our next support. Not too hard to see that. Just to the left is the orange zone, 1.3245, 1.3215.
So, that would be a positive move for the US on any of that news. PPI. FOMC. We would look for this to head back lower again through that pink-shaded area. If it doesn’t and we see some negative sentiment after any of that news – poor PPI, poor or no change of interest rates for the FOMC US. If they don’t change the interest rates as they are anticipating doing, then we could see it bounce off of here and a return higher again.
So, very critical area here, but also with our news for the day today. We have this area here as well. I’m going to take this black box up here and note that this is a pretty interesting area that we have here highlighted in the black box. Resistance at the green zone. We’re at the bottom at the pink zone. So, the green zone at the top would also be an interesting area because if it breaks that, we would likely look for a further move higher for the GBPUSD. So, that’s an interesting area as well. Top resistance zone, 1.3415, 1.3435. But critically is the pink-shaded area today.
Four-hour timeframe. We get down here to the four-hour. Let me zoom out a little bit here. And not too hard to see. Again, there’s support back here on top of that pink-shaded area, so it is distinctly the area that we want to watch today. Support here again. Poor news US, we would send this back higher. Challenge the blue zone. Likely challenge the green zone. And of course above the green zone, we’d look for the return of the uptrend. Good news, we’ll look for the breakdown of 1.3300.
What I would like to see is a candle body get underneath the pink-shaded area to increase my confidence. That’s always what it’s about. Increasing our confidence in our trading decision. There’s never going to be a time when we can guarantee what’s going to happen in the Forex, but what we can do is increase our confidence. So, a candle that gets underneath the 1.3305 and that last support over there will increase my confidence that the market is going to go down here and becomes a short opportunity for the GBPUSD after our news today for the US.
From Forex Traders Daily, this has been your daily analysis with Ross. If you would like to get Ross’ analysis on all the currency pairs he’s watching and all the trades he takes today, join him in his live Trade Room by clicking on the link below. Please leave any comments you have about today’s video in the comment section below.