The Gbp-Usd closed last trading week on a bearish note (just above a support line), after testing and rejecting highs at 1.5930. The last 3 candles of the trading week showed a strong bearish force in action, and a possibility to do more hike to the downside.
Tuning into the weekly chart, details become a little bit more concrete here as we can see a well formed bearish pinbar, showing strong rejection of key resistance/event area at 1.5930, which also lines in perfectly with the 50% Fib level - giving us a confluence of 2 levels!
Notable is the fact that the dominant trend on the weekly chart is bearish, hence all the bullish move of the past weeks on this pair could be seen as a correction move by the market; since the market does not move in straight lines.
My bias on this pair is that a strong reversal to the down side is imminent given the confluence of so many factors on the weekly chart. My advise will be to look to enter short positions in the coming weeks, if/when next support at 1.5670 fails at holding out price.
@Cbig, thanks for the “like”. You are spot on with your comment. We can only make our analysis based on chart information, but it’s the market that corrects our view. Let’s see how it plays out.
Is anyone familiar with the shark formation regarding fibbonaci retracments. I will post exactly what I mean with a chart once I complete the presentation of what I mean. If anyone is familiar with this formation it is appearing on the daily GBP/USD.
Hi! good morning/evening or whatever! what you think is going to happen on gu monday? I have one short going on, but there is the greece factor with is scaring me a bit!
Hi, I think the GU is slightly bullish right now. What I am expecting is a pull back to support around 1.5730 before we see a climb to about 1.5930 then perhaps 1.6130 much later.
The bottom line is that I am bullish biased on the Gu (and EU as well) in the coming week. I posted a buy signal for market open on EU. Check the EU thread.
Take note that this is just my own perception of the market, and can be very wrong, so please cross check the facts before placing trades based on my thoughts. Safe trading and take care!!
You might want to draw a 200 SMA on the daily and see that it was tested last friday, but rejected. Also the round number 1.5900 is close to this SMA, so my outlook is short to around 1.5700 …
Hi, Thanks mrchilled
Also what do you all pros think of today’s scenraio of gbpusd or today’s bias, as it is still below 200 sma at the moment, but overall sentiment is buy
hope lot of pips!