Hi Traders! Arvinth here from the Home Trader Club team. The weekly summary and review of January 27th 2023 is here. It is now time to recap and summarize the trade setups that we had during this week. Below you will find a short explanation of all the trade setups we had this week and how it has currently developed now.

Trading Ideas (Blog Posts)

GBPCHF – My idea here was “On the H4 chart, the price which is moving higher has created a bullish trend pattern in the form of three higher highs, and higher lows, we may consider this as evidence of bullish pressure. Generally, after a bullish trend pattern, we may expect corrections and then potential continuation higher. In addition to this, the price reached a key resistance zone that has formed based on the 161.8%(1.13839) Fibonacci expansion level of the first wave and the 61.8%(1.14126) Fibonacci expansion level of the second wave. Also, we have a bearish divergence that has formed between the first high formed at 1.13736 and the second high formed at 1.14293 based on the MACD indicator which we may consider as evidence of bearish pressure. So based on all this, my short expectation is bearish and my mid term expectation is bullish here”.

Current Scenario – In GBPCHF, based on the above-mentioned analysis, my short-term expectation was bearish and my mid-term expectation was bullish. My view still remains the same here.

GBPUSD – My idea here was “On the H1 chart, we have a bearish divergence that has formed here as well, between the first high formed at 1.24350 and the second high formed at 1.24473 based on the MACD indicator which we may consider as evidence of bearish pressure. The price then moved lower and broke below the last low at 1.23128 thus creating lower lows which we may consider as another evidence of bearish pressure. So everything looks good here for the bears and until the key resistance zone (marked in red) shown in the image below holds my short-term view remains bearish here and I expect the price to move lower further”.

Current Scenario – In GBPUSD, my plan is to look for pullbacks and then further continuation lower until the key resistance zone holds. The price action is following my analysis so far, we had a deeper pullback and then the price which is moving lower has delivered 80+ pips move so far.

NZDJPY – My idea here was “On the H4 chart, we could see that the price which was moving lower has created a bearish trend pattern in the form of three lower highs, and lower lows we may consider this as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then a further continuation lower. Currently, it looks like the correction that we are looking for is happening. In addition to this, the ADX indicator gave a bearish signal here at the cross of -DI (red line) versus +DI (green line) and the main signal line (silver line) reads a value over 25 which we may consider as yet another evidence of bearish pressure. Also, we have two key resistance zones that have formed. The first key resistance zone is formed by the 100%(84.741) Fibonacci expansion level of the first wave and the 100%(85.461) Fibonacci expansion level of the second wave. The second key resistance zone is formed by the 161.8%(86.965) Fibonacci expansion level of the first wave and the 161.8%(87.719) Fibonacci expansion level of the second wave. Until both these key resistance zones hold my short-term view remains bearish here and I expect the price to move lower further”.

Current Scenario – In NZDJPY, the price action is following the bearish expectations so far. Until the two key resistance zones hold my short-term view still remains bearish here and I expect the price to move lower further.

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