The moment the pair lives in seems to be obscure.
The pair has been in a bearish channel since 2018 and recently the price touched the highest point of that channel (downtrend line) and failed to break through.
So, for the pair to go up, the first point is to break this channel that, in past situations, was rejected. This channel is currently marked by the circle drawn in the graphic above.
In the condition of breaking the downstream channel, there is still resistance caused by previous tops, which are marked by the rectangles and the prices broken down in yellow in the graph.
If the price exceeds these resistances, the sky is the limit for the pair.
Until then, I believe the route will be quite thorny. Honestly, I will not trade on this pair until I clearly show which macro path the price will take.
If it is for someone, my opinion is that of shorts for that moment and I explain the reason better.
Simple, England was very affected by the coronavirus and their economic growth will not be as fast as in China, for example, adding to the fact that there are several obstacles that hinder the price rise and the previous rejections when the price reached the top the low channel.
Can I be wrong? Yes!!
At the moment it is best to monitor what the price action will be for a decision making ...
The pair has been in a bearish channel since 2018 and recently the price touched the highest point of that channel (downtrend line) and failed to break through.
So, for the pair to go up, the first point is to break this channel that, in past situations, was rejected. This channel is currently marked by the circle drawn in the graphic above.
In the condition of breaking the downstream channel, there is still resistance caused by previous tops, which are marked by the rectangles and the prices broken down in yellow in the graph.
If the price exceeds these resistances, the sky is the limit for the pair.
Until then, I believe the route will be quite thorny. Honestly, I will not trade on this pair until I clearly show which macro path the price will take.
If it is for someone, my opinion is that of shorts for that moment and I explain the reason better.
Simple, England was very affected by the coronavirus and their economic growth will not be as fast as in China, for example, adding to the fact that there are several obstacles that hinder the price rise and the previous rejections when the price reached the top the low channel.
Can I be wrong? Yes!!
At the moment it is best to monitor what the price action will be for a decision making ...