GBPUSD is Undecided, Probably Bullish

Updated

GBPUSD has been in a range since mid 2016. Therefore long-term trending strategies may not work at the moment. Also when price is at support or resistance of this range, you have to be careful with the direction of your trades. Counter swings are very powerful there. A lot of directional trades may not work. This will be so until GBPUSD breaks out of this range or leaves the extremes. It's currently at the resistance. If it does break out, there will be nice swing and position trading opportunities in the long side. It's a major resistance so I would wait for another strong bullish weekly candle to confirm a break out.

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GBPUSD just gapped lower in the week's open. A bearish sign, but let's see how market reacts tomorrow.

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Just as I thought, GBPUSD seems to be strongly rejecting that resistance level. It remains in the range for now. Next thing I would be looking out for is the confirmation of a short term bearish trend, to fade the move. I'll keep updating this till we have a trade.

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This Idea is still in development. There is no trade yet. There seems to be an upward compression, ascending triangle on the 1M timeframe. This means bullish pressure is still strong. We will keep watching to see how the day closes.

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I short the cable at 1.3353. Like i warned initially though, the swings are violent in either direction, so I have covered my position at a limited loss. I will either resume the trade if I am sure that a bearish trend will continue to form, or close the position if the bulls persist past tomorrow.

nnadivictorc

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