We have seen the pound gain super strength since september last year, and a huge bullish market in the GBPUSD, with buyers dominating the market. But with recent news regarding the the Dollar, we have seen the Dollar fight back on all pairings. So as we see it we have three Scenarios in this pairing.
Scenario One; (Yellow Arrows)
- RSI now oversold, with alot of remaining buyers in the pairing, we see the pound pivot on support, and continue to remain bullish, with a short resistance area but expect to push through and remain in trend.
Scenario Two; (White Arrows)
- Price breaks Trend line and a quick Retracement to test old resistance, failing to break new resistance we could see the price fall heavy in price and potentially see a new bear market creating a new lower low.
Scenario Three; (Blue Arrow)
- Price breaks trendline and gives indication of further slippage in price, buyers pull back when further into the RSI, making it a false out and see bulls gain back further strength.
Scenario One; (Yellow Arrows)
- RSI now oversold, with alot of remaining buyers in the pairing, we see the pound pivot on support, and continue to remain bullish, with a short resistance area but expect to push through and remain in trend.
Scenario Two; (White Arrows)
- Price breaks Trend line and a quick Retracement to test old resistance, failing to break new resistance we could see the price fall heavy in price and potentially see a new bear market creating a new lower low.
Scenario Three; (Blue Arrow)
- Price breaks trendline and gives indication of further slippage in price, buyers pull back when further into the RSI, making it a false out and see bulls gain back further strength.