GBPUSD: Hurst Cycles - 14th November 2022
Sterling moves up from a low of at least 40 week magnitude in late September. The first 80 day nominal peak of this larger component is now due, we look at the current position and outlook for price
Tools required: Nominal Model | FLD | FLD Trading Strategy | FLD Trading Strategy (Advanced) | Principle of Nominality | Underlying Trend
Phasing Analysis
Sentient Trader
Utilising a pattern recognition algorithm and Hurst’s diamond notation.
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Time Frequency Analysis
Wavelet convolution targeting the 80 day nominal component
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Analysis Summary
Price moved up in a predictable fashion from what is highly likely to be at least a 40 week nominal low in late September. The 40 day component low subsequently occurred on the 4th November, price moving up once again to approach the 40 week FLD and our target of around 1.20 from the previous report.
The long term picture remains largely unchanged and we retain the most recent 18 month nominal low phasing in December 2021. Should price surge above the 40 week FLD resistance in coming months (described more below) we will revisit the longer components. This is an outlier scenario.
At the medium to short term we have FLD cross targets yet to be met for the 8…