If we examine GBP/USD on the weekly time frame we’d notice that it is developing within a relatively wide upward consolidation and it has reached the resistance trend line (in blue) of the drop from 6th July 2014 to 2nd December 2016.
At the same time, the consolidation from 8th January 2017 (1.17914) up until now has been forming an upward trend channel (in red) and it is possible for the pair to continue developing within that channel for quite a while.
On the H1 time frame the pair is also forming a channel (in green) but at the moment it’s difficult to say in which direction the breakout will be.
In case the pair breaks out below the support trend line I think we could expect a drop to 1.2760 – 1.2750.
In the alternate scenario the pair will break out above the resistance trend line and it will rally to 1.3120 and then to 1.3280-1.3300.
Great assessment, thank you for sharing!
ReplyDeleteGood post!
ReplyDeleteShort term downside is limited.
ReplyDeleteGood insight.
ReplyDeleteGood take on markets!
ReplyDeleteGood post.
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