Since January 11, the Cable went upwards by 800 pips, reaching a high of 1.4345. Thursday and Friday saw a pullback in the market, and while price may go upwards again to test the distribution territories at 1.4300 and 1.4350, there would soon be a serious pullback, which may signal a start of a bearish journey. The outlook on GBP pairs is bearish for this week and for February.
Wheat (ZW) rallied more than 1.5% in yesterday's opening trading day of 2018, and appears poised to continue its upside in this shortened week after having broken a 3 month downchannel resistance line (on the 4hr chart). Forming currently its 4th straight green weekly candle though suggests that ZW may begin tiring by next week, coinciding perhaps with what may become downchannel resistance (on the daily chart).
March corn futures finished the last trading day of the year down a penny, trading in a whopper of a range at 1 cents. Fridays Commitment of Traders report showed funds have a net short of 206,624 contracts, this was a reduction of 15,529 from the previous weeks short of 222,153. Although they did cover a small portion, this is still one of the most bearish positions theyve had for this time of the year. For the year, front month futures were unchanged. Literally; March 17 corn finished last December 30th at 351.