Positional trading has been subdued to some extent in last 2 days but GBPUSD is definitely better to trade then EURUSD. YEN, NZD, CAD and AUD show trending patterns and those are the currencies we should focus on. GBPUSD has been showing us a decline for last 6 days and we can identify a BEARISH ZIG ZAG.
However the pair is CONSOLIDATING at the moment inside the rectangle within the equidistant channel. We can spot 2 possible confluence points for a breakout. Due to consolidation BREAKOUT is 2-way directional. If the pair breaks 1.5740 with MOMENTUM 1.5775-80 is the next target. H4 close above 1.5740 is then needed for further break towards 1.5817.
If the pair manages to break 1.5665 with MOMENTUM then 1.5625-15 is next but the pair will still be contained within the channel and only 4H close below 1.5625 could tank the pair towards 1.5565.
We need to pay attention to the 2-way channel breakouts and possible rejections if breakouts don’t happen.
The analysis and the article presents Nenad's opinion. Remember, financial trading is highly speculative & may lead to the loss of your funds. Proper risk management is the Holy Grail of trading.
Recommended Content
Editors’ Picks
EUR/USD stays below 1.0700 ahead of US data
EUR/USD stays in a consolidation phase slightly below 1.0700 in the European session on Wednesday. Upbeat IFO sentiment data from Germany helps the Euro hold its ground as market focus shifts to US Durable Goods Orders data.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold manages to holds above $2,300
Gold struggles to stage a rebound following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% ahead of US data, not allowing XAU/USD to gain traction.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.