When markets open Sunday evening, the price lacks an input for forward motion. Lack of forward price information places the traded price to past views from Friday by no other choice. Sunday night opens is the only time during a trading week, the price trades Friday or backwards prices.
The time factor remains on a normal past schedule as the 1 hour fall back period didn’t start officially until the China open.
From Friday, GBP/USD was dealing with 2 prices: at the Sunday open: 1.3490 and 1.3493. We’ll term 1 price a forward price and the second a backward price. GBP/USD traded on the first hour from 1.3492 to 1.3475. At 1.3492 is known but where is 1.3475 at the bottom support.
Bottom supports from Friday morning were located at 1.3451 and 1.3464. However Friday morning prices no longer count as interest rates changed Friday afternoon which means we may or may not have significant differences to prices.
From 1.3490, we have supports at 1.3449 and 1.3461 From 1.3493, supports are located at 1.3452 and 1.3464. Not a significant difference this trip yet important to know exactly where all prices are located for longs and shorts as not many pips trade anymore and to trade perfectly for maximum pips.
Price information for Sunday open we know supports are located at 1.3461 and 1.3464 and we know GBP/USD is oversold and long is the way.
Where is 1.3475. From 1.3461 to 1.3491 is 30 pips or 1/2 at 15. From 1.3490 offers 1.3475 and from 1.3493 allows 1.3478. The past price at 1.3490 was the correct price to factor. But we also knew 1.3475 was close to 1.3464 and 1.3461.
The last factor is the number 14. From 1.3490, allows 1.3476 and 1.3493 offers 1.3479. So far, we have 1.3475, 1.3476 and 1.3479 as supports and long.
To factor the range from 1.3475 to 1.3492 offers 8 pips. This places supports at 1.3483 from 1.3490, and 1.3485 from 1.3493. From 1.3461 offers 1.3469 and from 1.3464 offers 1.3472. The above is wrong to entry and must be wrong to target.
A long from 1.3475 traded to 1.3491 for 16 pips. We have 1.3490 and 1.3493 as vital resistance points but the Sunday open already informed to resistance points. We required bottoms. If the price broke above 1.3490 and 1.3493, then focus becomes upside trade targets. Upside targets are already known from Friday’s new adjustment to interest rates.
The overall trade duration for Sunday is 3 1/2 hours due to the fall back 1 hour time change. Normally for 6 months of every year, day trades run from 9:30 pm and 2:30 am EST and today for the next 6 months, 8:30 pm and 1:30 am. We had 3 1.2 hours on th Sunday open as opposed to 4 1/2 hours from 5:00 pm to 9:30 pm.
Once markets officially open, the above information becomes completely worthless to trades, entries, targets, supports and resistance points. Required is a new factor for supports and resistance and bottoms and tops to know entries and targets. A new factor is known from price information and when nations release interest rates.
While GBP/USD was highlighted as today’s example, every currency pair on the planet works for Sunday night open trades as the back price, support and resistance from Friday must be known for perfect trading.