GBP/USD wildly overold, reversion to mean underway.

FX:GBPUSD   British Pound / U.S. Dollar
Technical - very oversold see MAs, MACD divergence on daily clear enough. Flash crash in October, not retested as yet, solid buying from that huge hammer low which most likely marks the final low. Friday close at the bottom of the channel is an ideal buying oportunity. GBP also very strong against JPY and Euro since US election and big buy volume spikes on Trump win.

Fundamental high court ruling since flash crash low has kicked the massive bearish sentiment into touch. It is likely that Brexit will not be nearly as bad as feared as other European nations have expressed as much. Parliament will have a greater say following ruling one way or the other, whilst a solid stream of positive economic data show the doomsayers have so far been proved wrong. On that basis alone Cable is wildly oversold and and here. I suspect a general USD weakness will push flows into Sterling really squeezing the shorts.
Comment: confirmed so far this morning. upside channel prelim target see my hourly post in a moment.


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