Classical example of Channel rotation which is supported by other underlying markets.
After a massive break to the downside it has been a few days that GBP has been retracing but the question is whether it is the time to be on pound and I would say YESSS!!!
Here are the reasons. Starting with Pound first
1) This is UK Gilts 10yrs, opposite relationship is expected between FX and Gilts.
See where we are now? It is bouncing off the supports
2) This is UK Bonds 10yrs. positively correlated with FX.
Almost got to the resistance and pulling back now hence pound falling.
3) This is FTSE 100 . Just made all time highs and after touching 23% Fibo heading higher.
If FTSE make a higher high again we should see Pound falling futher.
All indices are up. See the weighted averages for CAC, DAX , FTSE , EUSTX50 , FTSEMIB, NIKEI and NIKKEI .
4) This is pound Bonds. Heading up means pound will be falling. More debt bad for currency right?
See the cycling lines in all charts above. They all suggest a major swing low or high for today!
5) Pound , Just look at the candle here!
6) This is weighted average pound.
Pulling back after touching EMAs and Fibos and Resistance.
To be honest I was waiting for GBPUSD short but then EURGBP Long came first ...
Thanks so much for your in depth analysis !! I've learnt so much from your ideas!! Much much more than the past 3 months I've been in demo mode!!