GU is at a very strong support zone.
Even though it broke below the psychologial 1.25000, there is much fib support here.
Of course, if PM May loses power, GU will take a strong dip.
BUT, that may actually be GOOD for the Pound going forward, if the market imagines a more capable PM.
I expect some bounce right now, maybe just a dead cat.
If this support breaks, I think it can only a little lower before recovering.
Background:
I am a Dollar Bull and Pound Bear, and will remain so until BOE starts talking about rate hikes or PM May starts presenting a positive and plausible Brexit scenario.
My GU adventure started with a search for top of uptrend around Sept 20th
Then came the big drop, which I caught most of. I started looking for bounces to short
Next I was looking for 1.2700 as a bottom which was hit and bounced hard
After taking some longs on the bounce, I was looking for shorts again:
Rode it down to 1.283xx and then good Brexit news made it bull, which I caught one leg of
Since then it has been all downhill for course. Now I am looking for a bounce at strong suport to short again
Even though it broke below the psychologial 1.25000, there is much fib support here.
Of course, if PM May loses power, GU will take a strong dip.
BUT, that may actually be GOOD for the Pound going forward, if the market imagines a more capable PM.
I expect some bounce right now, maybe just a dead cat.
If this support breaks, I think it can only a little lower before recovering.
Background:
I am a Dollar Bull and Pound Bear, and will remain so until BOE starts talking about rate hikes or PM May starts presenting a positive and plausible Brexit scenario.
My GU adventure started with a search for top of uptrend around Sept 20th
Then came the big drop, which I caught most of. I started looking for bounces to short
Next I was looking for 1.2700 as a bottom which was hit and bounced hard
After taking some longs on the bounce, I was looking for shorts again:
Rode it down to 1.283xx and then good Brexit news made it bull, which I caught one leg of
Since then it has been all downhill for course. Now I am looking for a bounce at strong suport to short again
Note
Some news brought a bounce Note
Bounce turned out quite strong 
the Golden Ratio is my Religion
the Trading View is my Nation
the Moderator Tag is my Flag
the Trading View is my Nation
the Moderator Tag is my Flag
Related publications
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.
the Golden Ratio is my Religion
the Trading View is my Nation
the Moderator Tag is my Flag
the Trading View is my Nation
the Moderator Tag is my Flag
Related publications
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.