We will first look at the weekly time
As we can see in the green channel, the price has broken the bottom of the weekly channel downwards.
which means that the price has fallen.
If we look at the 4-hour time (red channel), we will realized another main point, the price is moving up and down in a downtrend channel , and I think the price is forming the head and shoulders pattern. is .
But we should take a look at the 1 hour time (black channel), we will see the formation of the head and shoulder's pattern and then the price will go down to the bottom of the 4 hour channel.
Question: How far will the price go down ??
If we look at one hour time, we can at least hope that the price will fall to the support area, if it breaks the one hour channel, it will fall again to the lower support which indicated in the chart, ie to the 4 hour channel floor
Of course, this analysis is based on fundamental issues, due to high tensions between the UK and the EU and the EU complaint against the UK, we are facing a sharp drop in the pound, but if we see positive moves from the UK to compromise with the EU , The trend will change 180 degrees, which in my opinion, the UK is not very willing to comply with the demands of the Europe , may sometimes make agreements that cause a temporary rise of the pound, but ultimately due to the COVID-19 statistics and unresolved issues Regarding the BRXIT , we will continue to see a decline in the value of the GBP , it can be said that the pound is sinking and needs a lifeboat, so if we sometimes encounter an increase in the value of the pound we can look at it as the lifeboat.
Finally, I recommend that you do not open any position on the pound for now and wait for the best opportunity to buy, follow the news about the pound.
As we can see in the green channel, the price has broken the bottom of the weekly channel downwards.
which means that the price has fallen.
If we look at the 4-hour time (red channel), we will realized another main point, the price is moving up and down in a downtrend channel , and I think the price is forming the head and shoulders pattern. is .
But we should take a look at the 1 hour time (black channel), we will see the formation of the head and shoulder's pattern and then the price will go down to the bottom of the 4 hour channel.
Question: How far will the price go down ??
If we look at one hour time, we can at least hope that the price will fall to the support area, if it breaks the one hour channel, it will fall again to the lower support which indicated in the chart, ie to the 4 hour channel floor
Of course, this analysis is based on fundamental issues, due to high tensions between the UK and the EU and the EU complaint against the UK, we are facing a sharp drop in the pound, but if we see positive moves from the UK to compromise with the EU , The trend will change 180 degrees, which in my opinion, the UK is not very willing to comply with the demands of the Europe , may sometimes make agreements that cause a temporary rise of the pound, but ultimately due to the COVID-19 statistics and unresolved issues Regarding the BRXIT , we will continue to see a decline in the value of the GBP , it can be said that the pound is sinking and needs a lifeboat, so if we sometimes encounter an increase in the value of the pound we can look at it as the lifeboat.
Finally, I recommend that you do not open any position on the pound for now and wait for the best opportunity to buy, follow the news about the pound.