Hello
In this case we are looking bearish trending adn confirmation flow on both daily and four hour timeframe. This analysis is presenting very strong and powerfull momentum flow, because both timeframes connect at once at the same timing.
FLIPPING SIDE - Presents who has power on the market. At this moment we are count on bears.
Daily confirmation - when price broke ''flipping level'' first time, there was no momentum to be enough confident for sell position. When price broke second time '' flipping level'' that was still not confirmation we are looking for but just another fact we might falling in range mode. So we were not interested in potential move. We needed retracement.
As you can see from chart, price did a retracement from 1.34378 (second bounce from new LL) and closed below ''flipping level''. Because this type of confirmation is not clear, we were still not interented in trading GBPUSD. We needed more data and that happend at the last part when price broke recent lower low level at 1.34378 and stay below it for longer perioud of time. It is important that price stay below lower low level for longer time, because we do not have any clear retracement, that gives us any good fact for short position. Also you can see that price movement was slow these days untill today.
Today is a day when price gave us confirmation from a ''new daily territory''. Price holded position enough long below Lower Low level and important resistance at 1.33521.
4h timeframe - price is moving sideways, but bearish shots are getting stronger, which gives us bearish momentum power.
See also AudCad daily confirmation - bearish - previous analysis
In this case we are looking bearish trending adn confirmation flow on both daily and four hour timeframe. This analysis is presenting very strong and powerfull momentum flow, because both timeframes connect at once at the same timing.
FLIPPING SIDE - Presents who has power on the market. At this moment we are count on bears.
Daily confirmation - when price broke ''flipping level'' first time, there was no momentum to be enough confident for sell position. When price broke second time '' flipping level'' that was still not confirmation we are looking for but just another fact we might falling in range mode. So we were not interested in potential move. We needed retracement.
As you can see from chart, price did a retracement from 1.34378 (second bounce from new LL) and closed below ''flipping level''. Because this type of confirmation is not clear, we were still not interented in trading GBPUSD. We needed more data and that happend at the last part when price broke recent lower low level at 1.34378 and stay below it for longer perioud of time. It is important that price stay below lower low level for longer time, because we do not have any clear retracement, that gives us any good fact for short position. Also you can see that price movement was slow these days untill today.
Today is a day when price gave us confirmation from a ''new daily territory''. Price holded position enough long below Lower Low level and important resistance at 1.33521.
4h timeframe - price is moving sideways, but bearish shots are getting stronger, which gives us bearish momentum power.
See also AudCad daily confirmation - bearish - previous analysis
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