GBPUSD - The Potential Beginning of A Great Uptrend:
Note(s):
This is USDGBP (GBPUSD inverted);
Personally from FX trading experience, I feel that once a particular currency has become so extremely oversold/weakened, then it can only start to become stronger (simply because it can start becoming "less weak"; & not necessarily about getting really/very "Strong"); in order to start moving a pair in one particular direction...
Should the Greenback strength remains around at the current level, but if the Pound starts getting "less weaker"; then this pair (USDGBP) will start falling like a stone...
Or in another different scenario, if the USD do start getting stronger, then this pair will still fall like a stone (if the Pound starts strengthening more aggressively away from it's extreme oversold level) (e.g. just look at how the USDJPY pair started dropping like a stone at the beginning of 2016 & also during Brexit event; while the USD was getting seriously strong, the Japanese Yen was getting even far stronger; hence pushing USDJPY down right at the moment when all of the other USD pairs were rallying in USD favor...)
*When a currency pair rallies to too high a level (becomes extremely overbought/oversold), then it becomes unsustainable/highly-volatile & will have to "break-down" somehow...
This is what I am waiting for (not just for GBPUSD pair alone, but also for all other GBP & similar other minor, cross & exotic pairs, any which are sitting at an interesting/extreme level currently)...
Best regards.
This is USDGBP (GBPUSD inverted);
Personally from FX trading experience, I feel that once a particular currency has become so extremely oversold/weakened, then it can only start to become stronger (simply because it can start becoming "less weak"; & not necessarily about getting really/very "Strong"); in order to start moving a pair in one particular direction...
Should the Greenback strength remains around at the current level, but if the Pound starts getting "less weaker"; then this pair (USDGBP) will start falling like a stone...
Or in another different scenario, if the USD do start getting stronger, then this pair will still fall like a stone (if the Pound starts strengthening more aggressively away from it's extreme oversold level) (e.g. just look at how the USDJPY pair started dropping like a stone at the beginning of 2016 & also during Brexit event; while the USD was getting seriously strong, the Japanese Yen was getting even far stronger; hence pushing USDJPY down right at the moment when all of the other USD pairs were rallying in USD favor...)
*When a currency pair rallies to too high a level (becomes extremely overbought/oversold), then it becomes unsustainable/highly-volatile & will have to "break-down" somehow...
This is what I am waiting for (not just for GBPUSD pair alone, but also for all other GBP & similar other minor, cross & exotic pairs, any which are sitting at an interesting/extreme level currently)...
Best regards.