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The March British Pound contract has fired 90-10 Low Continuation & Reversal and Momentum Pinball Buy signals for today's trading. The 90-10 Low Continuation & Reversal signal tells us to look for morning follow through on the weak close, but to expect a likely reversal once the initial move has bottomed. The Momentum Pinball Buy signal suggests that we'd want to consider longs if price is strong enough to break the first hour high. Cycle Indicators (chart at right) appear as if a short term cyclical high has just been marked, but the more immediate trend is to higher prices. Odds favor continued downside in today's early trading. Look for an opportunity to sell the break of Friday's 1.6148 low, or even earlier if price demonstrates weakness below the 1.6194 level of the Daily Pivot. But stand prepared to exit or even reverse if we get appropriate price reversal patterns and/or Oscillator Divergence near important support levels. Our Normal Low Range Projection level of 1.6093 or the Extended Low Range Projection level of 1.6044 would be likely areas for such a reversal to take place, as would a test and failure of yesterday's low. The Momentum Pinball Buy signal tells us we can consider the long side even sooner if the first hour's high happens to be broken to the upside.
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