GBPUSD trades below key level that it has never closed below at year end since 1986. Is this the first successful break in 30 years or compelling generational low to long term investors?
Critical level for GBPUSD is 1.454
This is the level that GBPUSD has never closed below at year end since 1986! Which means we could be bearish and momentum-following as long as the pair is trading below but it is either the right trade and once in 30 years to happen or totally wrong. Sure the year is still young and we got price action from March to December to find out but never ever go full bearish. As for long term investors a 30 year level must be pretty compelling?
Prices circled show penetration below this pivotal levels that failed.
GBPUSD weekly chart showing price reaction to level
Zoom in on weekly chart showing price action to level.
And then there is AUDCHF
Which is at low of a 2-decade long channel. I will be watching how it closes at the end of March.
AUDCHF at low of 2-decade channel
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Soh Tiong Hum is Director of TerraSeeds Market Technician Pte Ltd. TerraSeeds is a trading educator in Singapore since 2005.
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