The British Pound Movement Forecast by the Market Profile for January 24, 2011

On Friday, January 21, the market profile for the British pound formed a trend day.

We can see the pound declining to the key support levels in the beginning of the day. These levels worked as a base for major market players, which resulted in the formation of a new growth wave only restrained by the January 18 POC control point – 1.5992.

A fair price area stood in the range of VAL – 1.5879 and VAH – 1.5975. The point of control POC was formed around 1.5894.

Forecast for today:
During today’s Asian trading the pound was trying to resume upside movement, however, the growth was suppressed by the very January 18 POC control point. Its breakthrough might resume growth to the upper level of today’s initial balance triple expansion IBx3 – 1.6021 with expansion to 1.6030 – November 15 VAL.

More conservative short positions will enter the market near POC of November 11 and 15, 2010 – 1.6048. Today’s main resistance point will be November 9 POC – 1.5894.

In case of decline, which should not be excluded, POC control point of January 20 – 1.5930 – will support the pound. From this point it might decline further to 1.5904 – VAH of January 17 with expansion to POC of January 21 – 1.5894.

More conservative long positions will enter the market near January 14 VAH – 1.5865. The main target for short positions will be the POC control point of January 17 – 1.5850.

Important: market profile forecast is based on March future contracts, thus the price can be slightly different from Forex price.A fair price area stood in the range of VAL – 1.5879 and VAH – 1.5975. The point of control POC was formed around 1.5894.

 

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