NickLindleyFx

Potential longer term play out for GBP/USD

FX:GBPUSD   British Pound / U.S. Dollar
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This pair is one I will enjoy watching play out in the future, and here is a potential idea of what we could see happen with GBP/USD . personally I believe sterling is extremely oversold, and those who sold on Brexit have now taken their profits and allowing buyers to enter the market and push price up in the longer term. I believe we are due a considerable pull back to the upside on GBP/USD when looking at the longer time frames. Although we have close with a very strong bearish candle on the weekly, I wouldn't be confident selling as there are no clear levels for me to sell from and this could be a bear trap for the majority. on the daily, as highlighted, we have put in place consecutive higher highs with higher lows and I think the price could continue to fall for a short period to place another higher low before we rally once again. Potentially this new higher low could form on the 61.8% daily fibonacci level which coincides with the previous higher high level - we could retest this. If I saw lower time frame candlestick rejection of this level I would then enter a long term long as calculated. However there is a lot of fundamental uncertainty in relation to these currencies so this could go anywhere - this is only an idea! but an idea I like the look off.
Yet to sink deep into analysing this pair yet however, I know price put in some bullish momentum, however this didn't seem very strong. This idea still seems valid, we could see some decline next week as price seems to be consolidating and not very convincing for bulls.
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