Today's MARKET STATE BRITISH POUND **BEAR TREND ACCELERATION**
- The MKT is vulnerable to the offer and threatening fresh losses. On the SELL side accept FADE, REVERSAL and BREAKOUT strategies below the previous session’s high point. DIR and DP BREAKOUT strategies should just "go", so do not risk much. UP FADE strategies are recommended over REVERSAL strategies as the MKT is expected to hold lower structure and any momentum shift should be considered a potential positive corrective turn.
- On the BUY side avoid REVERSAL strategies off major support levels as these signals are more likely short squeeze rallies and opportunities to SELL into and FADE. BREAKOUT strategies above the previous session high are a long shot, so risk less and go for more. Any DP FADE should have confirmation and is not recommended if the integrity of the previous session high is intact. After a break in the negative structure is confirmed, support levels can be used for short-term reactions using aggressive position management.
Today's PRICE MAP Performance for BP
Wrap Up
Identifying the KEY STRUCTURAL levels in the BRITISH POUND futures market had traders shorting the currency from the expected level of RESISTANCE. In a BEAR TREND ACCELERATION market state, the expectation is for the market to maintain aggressive negative structure, building lower lows and lower highs. When the market rallied above the *1.5239 level early morning, the aggressive signal was negated; however, the market remained bearish BELOW the sentiment bias, represented by the R Level. The R Level at the minor level above the UP created a "resistance zone" with the UP being the expected MAJOR level of resistance. Our first sell opportunity was given at 4:30 am CT when then market put in an OVERBOUGHT signal in the RSI at our KEY RESISTANCE PIVOT (UP). Traders were able to short the market from the UP and ride the trade down to the DIR. After bottoming about 12 tics above the expected level of SUPPORT at the DP, the market again tested the RESISTANCE PIVOT at the UP. A double top was put in right at our major level of resistance with a SLIGHT bearish divergence signal with the 7:45 am CT top, once again allowing traders to enter the market from the short side. As anticipated, the market sold back off to the DIR and allowed traders to take profits on the position.
