GBP/USD: Nudging into OBOS territory – FXStreet Signals

Gonçalo Moreira, CMT Independent Analyst

Since the June 10th high, the GBP/USD has been swinging along descending channel lines, proving opportunity to buy and sell these boundaries in combination with overbought and oversold conditions.
The general expectation we have is for a short-term dip into the 1.2405 area, which could flip polarity to become support. If broken, an intermediate line could defend further downside (currently at 1.2320 and descending). Prices have to drop with some momentum towards these areas to ignite a reaction to be traded upon, otherwise, a dull descending structure will do more damage and we would have to wait for a dip all way down to the 1.2200 area.
On the upside, bulls certainly remain in directional control until the descending line (now at 1.2660) is met. Here too, a collision with overbougth momentum, ideally originating from a previously oversold condition, would set-up a short trade targeting neutral oscillator zones again.

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Author

Gonçalo Moreira, CMT

Independent Analyst

As a trader in the foreign exchange market since 2005, Gonçalo Moreira honed his analytic and strategic skills through the Chartered Market Technician (CMT) designation. 

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