Pound Vs Dollar breaks through 80 day VTL and FLD

Movin’ on up

As expected and outlined in the previous post  on the GBPUSD pair, price has moved beyond the 80 day VTL, confirming the 20 week trough (at least) that occured on the 23rd of January this year. This VTL had provided resistance at the peak of the 20 day cycle, which most probably made a trough on February the 10th.  It has also crossed the 80 day FLD, creating a hurst target of 15567. This is currently a ‘C’ category interaction in the context of the 20 day FLD trading strategy I use. Here’s the chart:

GBPUSD_£__daily_12_02_2015Crucially, I believe if this 80 day target is undershot it will show that the 18 month trough did infact occur back in September. If it is strongly overshot and breaks the 20 day FLD (green line) then perhaps January the 23rd is a trough of 18 month magnitude.

The 40 day trough is expected to occur around the start of March. The move down via the ‘D’ category interaction into that particular low will be telling aswell.

Leave a Reply

Your email address will not be published.