Forex Trade Signals and Setups Sept. 26th
GBPUSD – Possible Kumo Break Coming
After rejecting off the 1.6600 figure a month ago, the GBPUSD started its downtrend beginning with a successful Kumo break, then executing a series of two Tenkan-Kijun Cross signals both of which profited nicely.
The last move seems exhaustive and the bounce off the 1.5330 lows has produced a solid move and is holding (so far) above the 20ema. Because of the sharp nature of the bounce, there is an upcoming Kumo window with a flat top and 50% fib level of the last downswing. Traders should watch for this area in the kumo as a possible weakness in the resistance and the flat top+fib as a possible turning point for a move higher should it take out 1.5660.
Silver – Formed a Pinbar…A Bottom in Place?
After the CME hiked margins on Silver by 16% (21% for Gold), a perfect storm came together with mutual fund redemptions and margin calls on hedge funds hammered precious metals with Silver taking the largest hit over the head, shedding approximately $14 within three days dropping from $40 to $26 in no time.
In many ways, we view this as a healthy thing for the long term uptrend (which we still think is in tact) because it forced a lot of speculators trading paper silver to take out their paper profits and with stops being triggered, reset the books which were getting to be a little stale and needing new blood. This, while holders of physical likely bought on the fall to $30 and $26 and we suspect those who were already holding physical are that much happier for the drop in prices allowing them to stock up more.
From a technical perspective, we are seeing a massive Pinbar on the 4hr chart which may have signaled both exhaustion or flat out rejection a critical support level of $26 (Dec. 10′, Jan. 11′ highs). Should this Pinbar hold, expect the market to challenge key resistance at $30.93 and $32.30. It is possible the nature of this pinbar being large might cause the market to challenge the low again so keep this in mind if looking for a buy.
For those of you looking to trade advanced pinbar setups, or our Ichimoku TKx systems, make sure to check out our Advanced Price Action or Advanced Ichimoku Courses where we teach rule-based systems for trading pinbars and Ichimoku.
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