GBPUSD – Market seems happy with appreciating GBP.. or is it so?
We saw two striking down spikes last year: first one on the day of Brexit voting (from 1.50 to 1.30) and the second is October flash crash (from 1.35 to 1.19).
Basing on the (pessimistic) dip of 1.19 level, as expected GBP appreciates slowly by making nice harmonics. Making new higher highs with reasonable retracements.
Taking the last highest low at 1.30, price shall face first 1.345 resistance. Breaking this level will point a new higher high, maybe at Fibo 61.8 retracement level of 1.380.
Technically this is a quite strong trend formation. “So far so good” on GBP side, but this resembles the Titanic story where romantic moments thrilled most of us.
Brexit risk is not over-priced as before... Economic data improves... Looks better to continue to long GBPUSD until we see an Iceberg.
(Also to be noted how GBP recovered after early elections of June this year.)
Basing on the (pessimistic) dip of 1.19 level, as expected GBP appreciates slowly by making nice harmonics. Making new higher highs with reasonable retracements.
Taking the last highest low at 1.30, price shall face first 1.345 resistance. Breaking this level will point a new higher high, maybe at Fibo 61.8 retracement level of 1.380.
Technically this is a quite strong trend formation. “So far so good” on GBP side, but this resembles the Titanic story where romantic moments thrilled most of us.
Brexit risk is not over-priced as before... Economic data improves... Looks better to continue to long GBPUSD until we see an Iceberg.
(Also to be noted how GBP recovered after early elections of June this year.)