by Christopher B, March 27, 2021
by Christopher Briggs March 27, 2021
Supply and Demand
I was caught unprepared for Thursdays move long and hadn’t seen the demand zone on the daily. Now that demand has been hit for the first time, I would expect that we would soon punch through it. Below, there are 2 key demand zones from the BOE’s rates decision on 4th Feb at approx 1.364 and the base at 1.358. There are also untested demand levels below this.
A Swap zone was created when we finally moved below 1.38 demand levels from 12th Feb and 5-8th March. I think this may have been absorbed during the down move on 23rd March (price dropped to 1.375 at 11am, back to 1.38 at 13:30 and down again) so sellers at the end of Friday may get caught out.
Lastly, a compression area was created in Thursday/Friday’s move up as demand was used up so any down move should hopefully wipe that area out quickly down to the demand zones mentioned above.
Therefore, I’m looking for sell orders at supply zones 1.3835 and then 1.392 area if that doesn’t work out which may produce nice long sells if the above holds true. Also prepared for this to be all wrong given how last week went for me!
Keen to hear thoughts of other traders and feedback. GL all
multiple small positions at supply zones with intention to close some to BE.
stops above supply zones at 1.388 and 1.94
Demand could be all along the candle of the 4th or non existent until the bottom
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