Weekly Analysis – GBP
GBPUSD D1 Chart – Bearish continuation
There was a nice continuation to the down side from the previous week. The GBPUSD got resisted by the 200-day moving average at very strong the sell zone. Price dropped from there. The poor UK GDP numbers kick started the bearish move, and last week’s recovery in Retail sales did not manage to push GBP any higher.
The pair closed at the lows of the week. Giving us an indication that more downside is to come.
GBPUSD H4 Chart – Review of last week’s analysis
There was only a minor retracement, scenario (i), and the pair fell hard again. See last week’s analysis here (READ HERE).
The Bearish move was expected. Expecting more of the same and will be looking to short on any retracement/bounce.
GBPUSD H4 Chart – Continuation of the Bearish Move
The RSI is at over sold region, indicating that there could be a potential bounce. This would give us a better price for a short trade. Potential sell areas would be at the 200MA and the past support turned resistance level.
Will be monitoring this pair to add on shorts to the bearish move.
GBPJPY H4 Chart
Similarly, on the GBPJPY, the RSI is showing us an oversold situation. Market should expect a temporary bounce and traders should take this opportunity to trade on any bearish setups at the sell zones.
EURGBP H4 Chart at a critical juncture
EURGBP is at a resistance zone. What will happen next week:
(i) A Bull trap and falls back within the range, or
(ii) Stays above the resistance, get supported and continues higher
Let the market show us the way and trade it accordingly.
Good luck everyone. Trade right and trade safe, the profits will come rolling in naturally.
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