In the last week the price break above the daily resistance and break back below it, this may consider as a manipulation inside the market. From the technical perspective, a further downside in the next week is expected.
From the COT perspective, hedge funds are actually bearish bias on the GBP for a few weeks, because during this push to the upside of GBP. they are actually closing the long instead of adding long, this implied that they actually want short at the better price. In other words, short at a higher price. So, in the latest week, they are added more 7.2k of short on GBP, which means they are starting to short GBP from the higher price. So, we may see a further downside for GBP pairs in the next week.
I will be monitoring the 4h price action inside the grey area if there has shown any retest or confirmation inside this area, then I will take a short position on the GU with a good risk-reward.
Remember, always reacting to the market instead of predicting the market, this analysis is based on technical and COT perspective.
Comment down below and let me know your thought.
From the COT perspective, hedge funds are actually bearish bias on the GBP for a few weeks, because during this push to the upside of GBP. they are actually closing the long instead of adding long, this implied that they actually want short at the better price. In other words, short at a higher price. So, in the latest week, they are added more 7.2k of short on GBP, which means they are starting to short GBP from the higher price. So, we may see a further downside for GBP pairs in the next week.
I will be monitoring the 4h price action inside the grey area if there has shown any retest or confirmation inside this area, then I will take a short position on the GU with a good risk-reward.
Remember, always reacting to the market instead of predicting the market, this analysis is based on technical and COT perspective.
Comment down below and let me know your thought.