Hey everyone! Welcome to this week's forex forecast for the week ending February 26th, 2021. I'm TraderBart with A1 Trading, and this week I'll be looking at GBPUSD, GBPCAD, EURJPY & XAUUSD.
Psst! It is my birthday tomorrow on the 22nd, so I have increased my code's discount, saving you more money! Click the button below and join the A1 Trading Community! It expires on the 26th, so be quick!
The Pound has been moving extremely bullish here against the Pound, forming a mini-channel inside the long-term ascending channel. We can see the retailer's support at 1.395, where I expect most retail traders to enter this market long. However, right below we can see the huge liquidity void with a bullish OB right below it too. I expect price to continue heading down, stopping out the retailer's trades and only reversing somewhere between the LV and OB. I would recommend looking closer into OB's in the shorter time frames to catch a sniper entry.
Last week we saw price successfully close at the top of this long-term ascending channel. We could potentially see price make its next long-term move towards the channel's bottom to create the next swing low LH in this market. I am expecting this to happen as we have also got a LV formed from the Daily TF at 1.745, showing where most orders are, and also, we have got the rather large bullish OB where traders are waiting to enter the market. I think we could see a clear drop towards the LV and consolidate for a while until price meets the channel's bottom before continuing the next move in the market.
We have got this ascending triangle pattern which we saw break to the upside in the past couple of weeks. Originally the highlighted box was a bearish OB; however, once we saw price break and continue the chart pattern, this block becomes a Breaker Block and essentially acts as the opposite of what it originally was. We have already seen price reverse from this block after the initial breakout retracement; however, we could see price once again return and once again break to the upside. I will be looking out for price action confirmations at this level to enter long.
I have mixed bias on this pair; however, it is a tradition for me to look at Gold. Price is currently holding at this bullish OB at 1775-1790. Price broke out of this OB but still closed inside the OB before the daily candle close. For this reason, I'm unsure whether this becomes a breaker block or continues to be a bullish OB. I think long-term, we could see this as a good level to enter longs, as price should be attracted towards the LV at 1890 and overall complete the long-term bullish flag pattern.