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WTI not alone – GBPUSD one other currency pair at gen-low!

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?

GBPUSD 12 M chart 1970 - present

GBPUSD 12 M chart 1970 – present | Source: Tradingview.com

Prices circled show penetration below this pivotal levels that failed.

GBPUSD weekly chart showing price reaction to level

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

AUDCHF at low of 2-decade channel

Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.

“Dear reader, I do not have a financial license to give advice. I do not know you the reader. Your financial objective and risk tolerance may be different from mine. I am not responsible for any consequence of your action.

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