GBPUSD
There really isn't anything new to add to what I have already said previously this week...We are below both the weekly and daily pivot points...The daily RSI isn't showing that drastic oversold...its @ 26%...low I know...but not enough yet t stop the sellers...I think 1.2665 is the level we will aim for...Sterling crosses are looking weaker...Eur/Gbp remains above 8900..so that shows that the market does have further to go on the downside... we have taken out 1.2735 that was our sell signal for the 1.2665 area...Here I think Cable will stop...It will create a Double base...and this is what I think the market needs to gather its thoughts and momentum an make the move higher...
I don't think we are quite there yet on the downside...and I will not change my view unless this week we take out 1.2835 and stay above it..Then I think we could see some quite good action on the topside with 12908 the immediate target...I beleive buyers would look to cover here...I think also that fresh buyers would be in if we broke above 1.2920 for 12985...The 55 day M/A comes in at1.2985 as well with the 21 day @ 1.3020....Try to get 1.3000 out of your mind..its like roundfigureitus...
Cable works best at the 20 and 85 regions on any of the big figures....so it wouldn't be 1.3000 that holds...it would be 1.2985 or 1.3020....that's the way this market works...weekly charts are still pointing lower...so al the while this is happening, longer term traders will be waiting to sell...we are trending on the momentum signals..so we bear this in mind for the longer term traders....On the weekly charts I have had to take fibs from Oct 2016 flash crash....and this puts the 78.6 weekly level at 1.2510....still a lot higher from the 1.1950 we saw in Oct 2016....but I am a great believer in Double Bases...specially when it comes at the end of a downward move...Cable loves a double top or bottom...that is its favourite pattern....so do not ignore the 1.2665 area...there will be buyers there and we will be joining them..
GBPUSD Current Trading Positions
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