Currently we see a de-risking prior to the German Election on Sunday. The GBP/USD is trapped withing the engulfing master candle (candle that traps subsequent candles within it’s range) which acts as important support and resistance. The price is dropping possibly targeting the POC 1.3520-35 (38.2, D L4, ATR pivot) and possibly the POC2 1.3465-75 (D L5, W L3, 38.2, historical buyers). The price could bounce from POC zones but have in mind that POC2 has a stronger confluence that the POC1. The drop below 1.3460 could put the pair in another bearish retracement wave towards 1.3345 zone.
W H3 – Weekly Camarilla Pivot (Weekly Interim Resistance)
W H4 – Weekly Camarilla Pivot (Strong Weekly Resistance)
D H4 – Daily Camarilla Pivot (Very Strong Daily Resistance)
D L3 – Daily Camarilla Pivot (Daily Support)
D L4 – Daily H4 Camarilla (Very Strong Daily Support)
POC – Point Of Confluence (The zone where we expect price to react aka entry zone)
