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Forex Market Analysis

GBPUSD & EURUSD Reversal Based On Gann’s 49-Day Cycle

 

Most people associate Gann’s work with angles and the Square of 9. What most people are not aware of is his day counts and specific time cycles, which are arguably more important than his market geometry. One of the most important cycles he discussed was the 45-day cycle and the 49-day cycle. The number 7 is very important in Gann analysis, and 49 days is 7 days x 7 = 7 weeks. He called this the ‘Death Zone’ – a cycle which ends trends and blow-off moves. Based solely on this cycle alone, we can predict a strong corrective move.

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Forex Market Analysis

XAUUSD Major Bear Move Ahead

The arc was holding as a strong support zone for gold, but we have ultimately seen it breakdown and out from that area. We have had an extended bear flag on this chart since the 21st of May and when combining Gann’s Market geometry with the Ichimoku system, we can see a clear and strong sell signal has been generated with both of these methods of analysis. I am targeting the 1282.68 zone as my first profit target area but we should and could see some support off of the 1×2 angle below us at the 1292.5 value area.