GBP Technical Outlook
- GBP/USD reversal has strain on the draw back
- Again inside bull channel, decrease parallel focused
GBP/USD reversal units it up for extra promoting
The weekly GBP/USD reversal places the onus on the long-side of the market. Abrupt turnabouts like final week can have some lasting results if not shortly reversed, and with worth contained in the channel from September, odds of additional losses rise much more.
The weekly reversal (excessive = 14241) got here from across the highest weekly closing print of 2018 (excessive shut = 14236), which turned out to be a major cycle excessive. So this isn’t that stunning.
With GBP/USD buying and selling again contained in the bull channel (broke the highest of it as assist), this opens up a path to commerce all the way down to the decrease parallel of the construction; this clocks in round 13630 or so, a stable distance from right here. Extra importantly, in confluence with the decrease parallel is the March trend-line. An enormous spot down there.
From a tactical method, the buying and selling bias is to the quick aspect except we see some kind of reversal and stabilization. Keep watch over danger developments as nicely, as shares sag and USD features a bid.
Recommended by Paul Robinson
Check out the Q1 GBP Forecast
GBP/USD Every day Chart (inside channel)
GBP/USD Weekly Chart (reversal at highest weekly shut of 2018)
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—Written by Paul Robinson, Market Analyst
You may observe Paul on Twitter at@PaulRobinsonFX