GBPUSD – On the daily time frame, the pair has been in a rebound from the 1.2875 zone. We have been seeing 7 days of up moves and looking at the chart the first upside target is the downtrend line that started on the 29th of June. We can expect this pair to first hit the 1.3275 level before testing the next resistance at 1.34.
If the bears come in full swing at the top of that down trend line, we can expect some bearish price action in the form of a pin tail or handing man. In the meantime, we would have to wait till that happens before we take a short trade. You do not want to be steam rolled by a market that wants to go in one direction, no matter how big your account is as the market can outlive your persistence.
I wouldn’t be surprised though if this pair continues to go sideways within that down sloping triangle. A break below last support around the 1.287 level will see this pair going southwards but do take note that on the monthly chart we have some pintails that seems to tell us that this pair might want to go northwards for a while.
Lets continue to monitor the GBPUSD and do not forget to look at the higher time frame charts as well. You do not want to be blindsided or anything like that.
To your success!
FX Strategist & Pro Trader
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