Yesterday I was bullish GBPUSD based on the price action on Monday and near term trend being up. Was looking for a dip for a move higher. I will not dare say that I am right on my view, as price dipped beyond my buy level and went down further, but eventually rallied strongly 70 pips from the lows. But even so, it only made a lower high, before cooling off and now is near the half point mark.
Such a move yesterday does open the question if Monday's bullish price action is just a pullback before further down or is it a near term low. IMO yesterday's move was a neutral to slightly bearish price action. Price opened between BZ and PZ thus it is neutral. Overall, not so clear but I would like to go with the bullish thesis and thus to look for a move higher, with a bounce off 1.2150 or so, with a max low at yesterday's low at 1.2130. The safer trade will be to let price goes back above 1.2180 to go long with stops at recent low.
Such a move yesterday does open the question if Monday's bullish price action is just a pullback before further down or is it a near term low. IMO yesterday's move was a neutral to slightly bearish price action. Price opened between BZ and PZ thus it is neutral. Overall, not so clear but I would like to go with the bullish thesis and thus to look for a move higher, with a bounce off 1.2150 or so, with a max low at yesterday's low at 1.2130. The safer trade will be to let price goes back above 1.2180 to go long with stops at recent low.
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