Happy new year forex friends. the holidays ended for me on Monday.
Well I saw a little (so I thought) setup in the GBP/USD on monday with stochastic pointing up from the oversold territory on the daily and with white candles forming, I took a long position. only to see a massive plunge.
I took a short (don’t try this o) which is giving me some gains to keep my loses in check. with today’s news line up, I am hoping for a bounce back to 1.4800 again.
Looking at the monthly time frame, GBP is almost bottomed out. so let’s keep our fingers crossed.

The Pound is still very weak and it may try to break the 1.4600 level and continue lower, especially if the NFP numbers out of the US on Friday come out better than expected.

Hello FXPipNoichi…

Yes, others have commented on the GBP/USD having formed a double-bottom (daily chart) through most

of 2015, so your monthly analysis fits in with that…

FXStrategist is right to point out that the GBP is stronger against currencies other than the US Dollar,

and indeed the NFP is coming up on the back of the ADP employment data, which beat previous figures

AND forecast today (the ADP labour data is a very good proxy for the NFP labour data, so I would not

be surprised to see strong NFP data on Friday).

With the Fed on a hawkish path, and the US Dollar pressing once more against that 12,200 level in

a bullish momentum, and with the BoE still in dovish mode, I would not trade a long-term GBP bounce

against the US Dollar, even if the ‘technicals’ looked so ‘oversold’ and appealing…

Perhaps it is just a question of timing…