GBPUSD Technical Analysis on Daily Chart – 7th January 2016
GBPUSD – On the daily and we can see that the pair is in a clear down trend with very little retracements in fact.
However, technically we can see that the pair has reached a demand zone around the 1.462 to 1.463 area. On the 13th of April 2015, the pair touched this area and went on to bounce spectacularly to as 1.548 in the first wave.
I would be cautious and not take any shorts at this level. In fact I would now want to look for proof that the bulls are back in the picture. Look at what the chart shows and don’t imagine anything. Let the market tell you when to go in. Lets be patient and wait for a bullish setup to form before attempting to go long.
Cheers and good luck to your trading!