GBPUSD:
We have seen the DXY fly to its weekly highs over the past few months. In my opinion we will start seeing resistance play out on the DXY; which indicates we will see a bearish dollar; implying GU will turn bullish.
As you can see on the chart, I have labelled the blue boxes (4hr areas). From my analysis I can see GU falling towards 1.24500. From that point I will be looking for long positions back up.
Reasoning for bullish movement:
The daily has closed as a bullish engulfing, moreover has rejected the weekly 61.8% fib level. On the 1 hour timeframe we have also broken market structure; plus the DXY looks bearish.
If we get the short move back towards 1.24500, price action would have formed an inverse head and shoulder formation; which is an additional bullish confluence.
Hope everyone has a great weekend, remember NFP (non farm payroll) is this friday, so markets may be very unpredictable.
Thanks.
We have seen the DXY fly to its weekly highs over the past few months. In my opinion we will start seeing resistance play out on the DXY; which indicates we will see a bearish dollar; implying GU will turn bullish.
As you can see on the chart, I have labelled the blue boxes (4hr areas). From my analysis I can see GU falling towards 1.24500. From that point I will be looking for long positions back up.
Reasoning for bullish movement:
The daily has closed as a bullish engulfing, moreover has rejected the weekly 61.8% fib level. On the 1 hour timeframe we have also broken market structure; plus the DXY looks bearish.
If we get the short move back towards 1.24500, price action would have formed an inverse head and shoulder formation; which is an additional bullish confluence.
Hope everyone has a great weekend, remember NFP (non farm payroll) is this friday, so markets may be very unpredictable.
Thanks.