GBPUSD: Expecting a bounce from here
Looking at this pair and comparing it to the DXY index I think there's more likely to be a bounce from here, than a further bearish extension.
DXY is failing to break a descending dynamic trendline, it's currently retesting again and showing signs of rejection. Fundamentals were good for DXY today but the price didn't react as I would have expected, which suggests the bears are strong here.
GBP showing a nice bullish pinbar on the 4HR today (even though this was followed by a bearish one following rejection from resistance), we're now back down to this region as a retest but has slowed.
I may be wrong, but with GBP rejecting support and DXY rejecting resistance, we could see a nice strong move, watching LTF's for my entry, target 1.225 to retest the descending dynamic trendline that stopped yesterday's advance - we may breach this on this occasion, if we do I'm noting an uptrend (HH's and HL's) on higher timeframes.
DXY is failing to break a descending dynamic trendline, it's currently retesting again and showing signs of rejection. Fundamentals were good for DXY today but the price didn't react as I would have expected, which suggests the bears are strong here.
GBP showing a nice bullish pinbar on the 4HR today (even though this was followed by a bearish one following rejection from resistance), we're now back down to this region as a retest but has slowed.
I may be wrong, but with GBP rejecting support and DXY rejecting resistance, we could see a nice strong move, watching LTF's for my entry, target 1.225 to retest the descending dynamic trendline that stopped yesterday's advance - we may breach this on this occasion, if we do I'm noting an uptrend (HH's and HL's) on higher timeframes.
Trade active
No proper confirmation so a big risk, however simultaneous double bottom (GBP) and double top (DXY) potential so for me odds are reduced and this could rocket, bought 1.2114 SL 1.21
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.