GBP/USD pair has been declining sharply during the week, we are likely to see this continue in coming week with major events lined up next week, so if there is a slight pull back, it’s good chance to enter into short trades.
The asset is flat now. I’ll set pending orders nearby the upper bound and bottom line and will see which one is gonna work.
GBP/USD was really went smoothly downhill with the momentum never letting it go and this is more than likely to continue and we may see the picture flipping further on the move, so we got to be very wise with how we deal here.
What a roller coaster week it was, with fortunes swinging from one side to another in hotly contested US Presidential elections! The election of Trump as 45 the President of US did not cause damage to the markets as was widely believed but that might be calm before storm! Focus would be on further course of action regarding policies that were presented before the elections! Expectations are a mid-path would be adopted avoiding contentious issues but that remains to be seen!
The asset is flat now. I’ll set pending orders nearby the upper bound and bottom line and will see which one is gonna work.
A loss of -0.70% marked this pair’s movement from the week’s open at 1.2573 to its close at 1.2485. Now this is quite remarkable for this pair to put up such resistance in the face of FED led USD price movements. Data wise, there were some economic data’s from UK and USA; which were kind of mixed, some Brexit chatters along with speech by central bankers! Nothing substantial next week and traders would look forward for next year’s new govt in USA and the Brexit negotiations!
GBP/USD as we can see on SAR indicator, the trend is pointing for bullish trend, it’s likely that we will see that continue, so going for long trades is not a bad option at all, but just need to make sure to get the timing correct.
GU this week has been very serious trend with the pair starting up on bearish zone, but packed a solid punch to taking it over 1.2539 level, but may come back inside 1.25 mark, so it could be good chance to enter into short trade.
GU has been pushing in mid-levels between 1.23 to 1.22 levels, it’s unlikely that we will see it go away from here, but if anything it looks set for bearish trend to flourish, but with already so far down, it is better to wait for some top up.
A loss of nearly 170 pips marked this pair for the week which saw high volatile news & events. Further price movements would come from what happens on the economic, political and war front which might or might not adversely affect the USD! So traders would be on edge watching for every move on the news which might have bigger impact. Traders would also not take any big risk too in such charged conditions!
GU was on high this week with the pair closing out on touching distance 1.30 level first time since Brexit fiasco, it will be interesting how it acts up as we move forward, but there is a lot of positive activities happening around for which we need to be very careful.
The GBP/USD has been very volatile, but with no clear direction. On the daily chart we can see that the last few daily candles are in the shape of Dojis of Spinning Tops, which is an indication of indecision. From the 1.2900 area, the pair may head in any direction.
GBP/USD is heading clear downside; it’s highly likely that we will see the pair close out this week in same fashion. It might even challenge 1.25 levels pretty soon. It will be interesting where things go next, but we need to make sure we work it out properly before entering.
GBPUSD : Buy & Sell Patterns
GBPUSD Bullish Scenario: A bullish pattern can be seen for another possible move higher but has yet to trigger buys at the BC 0.50% Fib. level. If looking to buy GBPUSD traders should be patient and wait for price to make a move lower towards the BC 0.50% Fib. retracement level at 1.2808. Waiting for price to hit the BC 0.50% Fib. retracement will offer a better risk/reward trade setup. Blue bullish pattern is invalidated if price moves below point B low of the pattern.
Bullish Pattern
GBPUSD 4 Hour Bullish Pattern
GBPUSD Bearish Scenario: A bearish pattern can be seen for another possible move lower but has yet to trigger sells. If looking to sell GBPUSD traders should be patient and wait for price to make a move higher and hit the red entry trend line and possibly terminate point 5 with a reversal lower. If price hits the red trend line traders should also be watching possible candlestick trend reversal signals (Harami, Dark Cloud, Bearish Engulfing, Shooting Star, etc.) for more confirmation.
Bearish Pattern
GBPUSD Daily Chart Bearish Pattern
GBPUSD Weekly Chart Bearish Patterns: In 2015 and 2016 this bearish pattern formed and both times has reversed and hit targets. Only time will tell if 2017 bearish pattern will trigger and reverse lower to hit target.
Of course, like any strategy/technique, there will be times when the strategy/technique fails so proper money/risk management should always be used on every trade.
The price range was quite extended with the low of week being 1.2811 and the high being 1.3115. Clearly GBP seems to be taking full advantage of USD weakness and trying to make way for higher highs. But how far the price might go from here remains to be seen as there is still high uncertainty in UK especially with respect to Brexit which should keep the GBP bulls quite guarded!
GBP/USD is posting an aggressive sell-off day following the BoE’s interest rate decision of holding its interest rate at 0.25%. The previous days the pair had a sharp buying interest but lost some of the gains in a few hours.
Does it match with your analysis???
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