GBPUSD: 4HR Death Cross, LH and LL formation downtrend
Maintaining my shorts on this pair with validation coming from the 50EMA (turquoise) crossing the 100EMA (white) which forms a death cross in the 4hr time frame.
GBPUSD has failed to make a new higher high and so I'm expecting a push down to the recent low, we may break this immediately, or retrace back to the descending trendline that's now formed. We're making lower highs and lower lows which indicates a down-trend.
Ultimately I'm expecting this pair to fall to below 1.22 in the coming weeks.
Big FOMC release tomorrow, if the notes support Powell's recent hawkish stance then this will be bad for cable, then there is NFP on Friday which is a bit unknown.
Fundamentally for GBP, recent data suggests inflation may be coming down, which suggests that the BoE may become less hawkish.
Powell suggested a couple more hikes, which could mean Fed interest rates remain higher for longer.
I'm also expecting a push up for DXY based on it's chart patterns.
I'm staying short.
GBPUSD has failed to make a new higher high and so I'm expecting a push down to the recent low, we may break this immediately, or retrace back to the descending trendline that's now formed. We're making lower highs and lower lows which indicates a down-trend.
Ultimately I'm expecting this pair to fall to below 1.22 in the coming weeks.
Big FOMC release tomorrow, if the notes support Powell's recent hawkish stance then this will be bad for cable, then there is NFP on Friday which is a bit unknown.
Fundamentally for GBP, recent data suggests inflation may be coming down, which suggests that the BoE may become less hawkish.
Powell suggested a couple more hikes, which could mean Fed interest rates remain higher for longer.
I'm also expecting a push up for DXY based on it's chart patterns.
I'm staying short.
Trade active
Comment:
On the move, DXY retest of descending trendline complete, should mean a big push down from here with DXY strength, FOMC to come
