After a well deserved influx of bullish momentum since mid April, GBPUSD is finally reaching a stalemate especially after tapping the weekly psychological level of 1.42364. This highlights all the essential characteristics of a distribution phase considering that price has been consolidating around around the psychological level for the past 21 Days now. Could this mean that GBPUSD is about to fall off the face of the earth? It certainly could be depending on how you are currently viewing this pair.
Here's my personal Technical Outlook:
Weekly Resistance of 1.42364 was last visited on February and currently is serving as a potential Double Top signifying bullish strength is diminishing. At the moment, price is very bullish as it is trading well above the validated trendline. Consolidating phases can go either way but what stands out and prompts me to lean towards the bearish bias is how price has failed to make new Higher Highs (1.42489 - 1.41802 with the later being the Lower High and the threshold where buying pressure stops should price close above.)
For now, I am sitting on my hands and waiting for price to get to i) The Lower High 1.41802 or ii) The rising trendline for relevant action to be taken.
Here's my personal Technical Outlook:
Weekly Resistance of 1.42364 was last visited on February and currently is serving as a potential Double Top signifying bullish strength is diminishing. At the moment, price is very bullish as it is trading well above the validated trendline. Consolidating phases can go either way but what stands out and prompts me to lean towards the bearish bias is how price has failed to make new Higher Highs (1.42489 - 1.41802 with the later being the Lower High and the threshold where buying pressure stops should price close above.)
For now, I am sitting on my hands and waiting for price to get to i) The Lower High 1.41802 or ii) The rising trendline for relevant action to be taken.
Comment:
Short positions active
Short positions active
Trade closed manually:
Closing at +70pips for the weekend.
Closing at +70pips for the weekend.
Pair moving as anticipated. Recent rejection at 1.41802 backed by a further break of the trendline highlights the incoming strength of the bears.