I hope you all followed my previous analysis about the ‘Brexit’ if you did, I believe you learned how to make money from the ‘Brexit’.
Personally, it was one of the most successful days I ever had as a trader, and why is that, I had a great success not because of the result of the referendum where it turned out that with some small advantage the British people prefer to leave the EU, it’s due to the combination of technical analysis and the effect of the fundamental environment.
The big question is what’s next?, where the market is heading?, if you read what the financial portals are saying you will get a mixture opinions, some will just describe the fear on the markets which is already known, as for a prediction, there is no clear estimation.
By analyzing the graphs we can answer about the stakes and the odds for each direction, we can also mark limits for the market, that’s what eventually important for a trader so here we go, let’s start with the hero of last days
GBPUSD Weekly chart
Currently the GBPUSD price is being trade below the Bollnger band 2.0 (the green line), it means that it’s not in the normal course, so we should expect for the next candle retrieve to get back and to be trade between the normal area which is between bollinger bands 2.0
To be more specific let’s have a look on the daily chart
It was expected to have two days of retrieve after a super and extreme day that begins outside Bollinger bands and also ends the day even below, so currently the price range is between bollinger 2.0 and the stochastic indicator shows Buy signal
So the prediction now for the next coming days is to expect for a retreive to higher price or a neutral trend that will stay on the new price range, in order to determine the price range we can zoom in into the four hours chart:
Here we can see clearly the range of prices for the GBPUSD, while the bollinger bands are narrowing down, for the next upcoming days, i’d expect from this great currency to stay between 1.35 and 1.32, it’s a wide range but with the right binary option tool it can be beneficial, in this case i would like to use boundary option, and also ladder option for the opposite direction, for instance, until the GBPUSD reaches one of the border prices, i’ll use boundary option, once it reaches one of the boundary prices lets’ say 1.35 i’d use ladder option for ‘Put’ trade, please remember the market can be extremely volatile and may surprise you so whatever you do, trade it with patient and lower your risk amount.
On this analysis i chose all major currency that were most affected from ‘Brexit’ result, next one is EURUSD, this time it’s easy to analyze.
During the ‘Brexit’ result first hours the EURUSD The currency actually broke out the resistance line and retrieve afterwards to touch the resistance line from below, it provides us two opportunities for great binary option trades, for me this is the most favorite currency to trade on.
- If the currency will continue with retrieving back to where he was before the ‘Brexit’ it’s a whole new game, in that case i’d wait it will reach 1.14 again to try to go short with some ‘PUT’ options
- At any other case the direction should be downwards, and the next stop should be around the new red resistance line as shown on the 4hours chart below
Last one is the Gold, in times of insecure, traders like to put their hands on a real asset, the expectation is to see more and more buyers and the gold rising up in the short and long term as shown on the Monthly chart.
Gold – Monthly
Have a prfitable week,
Albert Caprioli, Sr. Analyst
**This analysis review is delivered as a technical and fundamental in formation, this review doesn’t recommend to Buy or Sell any of market assets include indexes, stocks, currencies and commodities, any trader who act on the market is acting by his own judgment.