GBP/USD Coming Week Bullish Or Bearish?
Downtrend of GBP will continue or Bullish will take over and USD start its downtrend?
I’m sure even the market movers won’t be able to answer this.
All things good, as the market pleases, i ride along.
Warm Regards,
Ayọ
According to Dennis’ currency strength ranking, GBP currently ranks at the bottom. This is evident from the new monthly lows observed in August, September, and October. However, the current price is hovering just below the October opening price.
My impression is that while there’s no doubt that GBP is the weakest among the major currencies, there appears to be a lack of follow-through from market participants to drive the price lower. Therefore, as long as the price remains below the October opening price level, one should exercise caution when considering buying GBPUSD.
Conversely, if the price were to trade ABOVE the October month’s opening price level : 1.21897, we cannot rule out GBPUSD undergoing a correction phase, and intraday traders may consider buying into GBPUSD from a short-term trading perspective. This would indicate a potential shift in market sentiment, and traders should be prepared for the possibility of a bullish reversal in the short term in the coming weeks.
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This reminds me of a game at the end of meetings of a trader group I used to belong to. A member would flash up the last 6 months of a D1 chart on 20 different companies or forex pairs etc. and everyone would vote instantly which way they thought price would go in the next month. The next month we looked back and saw which votes were right. Usually votes for trend continuation were right: votes for trend reversals were usually wrong - but when they were right the moves could be very big and very quick.
So I’m going to say bearish, unless it’s bullish.
Just to be more specific, IMHO,
if price is treading above 1.21897,
i would consider GBPUSD as bullish.
if price is trading below 1.21897,
i would consider GBPUSD as bearish.
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