GBPUSD: Expecting a bounce from here
Looking at this pair and comparing it to the DXY index I think there's more likely to be a bounce from here, than a further bearish extension.
DXY is failing to break a descending dynamic trendline, it's currently retesting again and showing signs of rejection. Fundamentals were good for DXY today but the price didn't react as I would have expected, which suggests the bears are strong here.
GBP showing a nice bullish pinbar on the 4HR today (even though this was followed by a bearish one following rejection from resistance), we're now back down to this region as a retest but has slowed.
I may be wrong, but with GBP rejecting support and DXY rejecting resistance, we could see a nice strong move, watching LTF's for my entry, target 1.225 to retest the descending dynamic trendline that stopped yesterday's advance - we may breach this on this occasion, if we do I'm noting an uptrend (HH's and HL's) on higher timeframes.
DXY is failing to break a descending dynamic trendline, it's currently retesting again and showing signs of rejection. Fundamentals were good for DXY today but the price didn't react as I would have expected, which suggests the bears are strong here.
GBP showing a nice bullish pinbar on the 4HR today (even though this was followed by a bearish one following rejection from resistance), we're now back down to this region as a retest but has slowed.
I may be wrong, but with GBP rejecting support and DXY rejecting resistance, we could see a nice strong move, watching LTF's for my entry, target 1.225 to retest the descending dynamic trendline that stopped yesterday's advance - we may breach this on this occasion, if we do I'm noting an uptrend (HH's and HL's) on higher timeframes.
Trade active:
No proper confirmation so a big risk, however simultaneous double bottom (GBP) and double top (DXY) potential so for me odds are reduced and this could rocket, bought 1.2114 SL 1.21