We're now looking for GBPUSD to continue it's second third bearish leg and complete it's "Head and Shoulders" from the region of 1.24600 towards lows of 1.23282 over 145 pips away. Risk is low due to the position of our entry.
-Long wick formation on support suggests going long until 1.22040 and rejection of TL back down.. or market re-opens and pushes through support to continue short.
This coincides with my EURGBP analysis, as GBP loses its value, we'll see the opposite for EURGBP.
GBP has been under lots of pressure lately, All 8 Brexit proposals by the British PM (Theresa May) were all rejected. This has put the GBP under investor risk and uncertainty, the last 4 months been a Bullish ascending channel ride for GBP/USD. The bulls are no longer in play as the channel is broken to the downside with a strong retest and 200 ema daily...
- Weak pound due to BREXIT
- More upcoming uncertainty with the brexit date on the 29th
- Trade war in the US creating uncertainty on global demand
hurting UK exports (excluding financial sector)
- Trade surplus likely to increase during the fall in demand
- Possible upcoming Austerity in the UK
This is my view of the GBP in the current market state,...
Fundamental Analysis:- The USD is still the stronger of the two currencies with the FED looking at continuing their gradual rate raises over the near term. Even raising rates a little more than expected to stop Inflation jumping over their target. On the GBP side of the currency pair; Teressa May comes under pressure to resign as 40 of her MP's announce a vote of...
The break below previous support at 1.32 amid a strong downtrend signals lower prices
Two possible scenarios after today's vote in UK parliament over Brexit
A) former support at 1.32 is resistance and downtrend resumes toward 1.305
B) price closes back above 1.32 signalling a rangebound market and an eventual re-test of 1.347
You can see over the year we have been trading between the two main support and resistance. From price action you can see this market is starting to lose momentum trying to break through the resistance barrier. Bearish candle sticks and short term 2 hourly trend line has been broken. Think its time the pound dropped!
let me know what you think!
A series of lower highs, inside a big triangle / wedge (see daily or even weekly timeframe) we could see a bearish rotation down to the bottom of the wedge.
Coming from a historically strong and significant resistance area (1.2555) I see a potential bearish ride down to 1.2300 and possibly further. While venturing down I'm looking to lock profit after passing...
We have hit a historically strong and stubborn support & resistance zone, a psychological round number 1.2400, a 0.618 fibonacci retracement of X-A, and our momentum has been weakening - and even broke to the downside.
Now its time to jump on the bear train again! Or at least I am.
Targets are marked on the cart, with a potential zone which we may very...