Pound ($GBPUSD) 🔔 | What Wikipedia Cant Tell You About GBP
🛑 The pound is showing weakness as it seems to move in lockstep with the broader markets today. Further, economic data is set to come on Friday which should show a contraction in the UK economy due to the lockdowns.
While short term trends are bearish and the COVID fears are ramped up, there is still a case for the bulls due to the overall bullish trend... if the Pound can hold here. Let's take a look at some levels for the bears and bulls.
Support.
The current S1 bullish orderblock cluster is pretty much already lost, but it is none-the-less our primary support (it can still act as support if the bulls rally quickly).
Meanwhile, the S2 bullish orderblock is bound to see a reaction in the likely event that the bulls can't hold the current range S1.
If we do get a reaction at S2 it is possible we will try to retest the current range. This move could have enough momentum to bring back the bull trend, however, we more so would expect a move like that to lead to further correction eventually finding support at the S3 S/R flip and orderblock cluster.
Resistance.
In the unlikely case the bulls can take control back from the bears here, the first point of potential resistance is the R1 bearish S/R flip.
While R1 is notable, a turnaround by the bulls at this point will likely lead to a sustained move higher with the R2 S/R flip acting as resistance before the previous highs at the R3 bearish S/R flip and bearish orderblock are tested.
Summary.
The bears seem to have a pretty clear path to victory here with a wave of COVID and other assorted fears gripping the markets after an extended and bullish run. The Pound seems to be caught up in the whirlwind of chaos sweeping the markets, and this has us favoring the bearish outlook.
The bulls will have to step in quickly to change our minds, although there is still clearly a path forward for them.
Resources: dailyfx.com/forex/market_alert/2020/06/11/British-Pound-GBP-Latest-GBPUSD-Weak-Ahead-of-Fridays-GDP-Data-MSE.html
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While short term trends are bearish and the COVID fears are ramped up, there is still a case for the bulls due to the overall bullish trend... if the Pound can hold here. Let's take a look at some levels for the bears and bulls.
Support.
The current S1 bullish orderblock cluster is pretty much already lost, but it is none-the-less our primary support (it can still act as support if the bulls rally quickly).
Meanwhile, the S2 bullish orderblock is bound to see a reaction in the likely event that the bulls can't hold the current range S1.
If we do get a reaction at S2 it is possible we will try to retest the current range. This move could have enough momentum to bring back the bull trend, however, we more so would expect a move like that to lead to further correction eventually finding support at the S3 S/R flip and orderblock cluster.
Resistance.
In the unlikely case the bulls can take control back from the bears here, the first point of potential resistance is the R1 bearish S/R flip.
While R1 is notable, a turnaround by the bulls at this point will likely lead to a sustained move higher with the R2 S/R flip acting as resistance before the previous highs at the R3 bearish S/R flip and bearish orderblock are tested.
Summary.
The bears seem to have a pretty clear path to victory here with a wave of COVID and other assorted fears gripping the markets after an extended and bullish run. The Pound seems to be caught up in the whirlwind of chaos sweeping the markets, and this has us favoring the bearish outlook.
The bulls will have to step in quickly to change our minds, although there is still clearly a path forward for them.
Resources: dailyfx.com/forex/market_alert/2020/06/11/British-Pound-GBP-Latest-GBPUSD-Weak-Ahead-of-Fridays-GDP-Data-MSE.html
Hit that 👍 button to show support for the content and help us grow 🐣
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