Basic price action, broke key Resistance line on the upwards scale. GBP is technically over bought and should fundamentally be worth 0 with all the brexit shenanigans. Looking for a semi drop before a consolidation period followed by a larger progressive fall.
Nice clean charts 👌 how far down do you think price could go?
JamesEY
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@Apex_Managed_Capital, Thanks! I am expecting a weekly bearish engulfing candle.
Aphaynes
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Pound is massively undervalued and has been since brexit announcement. No logical reason for this and the Yen is in a really bad place so your analysis goes against pretty much all the facts.
JamesEY
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@Aphaynes, I beg to differ but we're all open to our own opinion. The uncertainty with brexit leaves me to believe the pound should be a lot lower than it already is.
AnthonyHak
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GBPAUD Sell also we have a Daily Double Top
JamesEY
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@AnthonyHak, Yeah, most GBP pairs are due for a sell-off. The double top is a great confluence
Plenty of room for downside on this one :) nice set up and chart
forexTrdr
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"GBP is technically over bought and should fundamentally be worth 0"
sorry but disagree on this.. market is still net short GBP so in positioning terms its certainly far from over bought. Fundamentally its worth far more than JPY if you cut out all fx noise and go back to interest rate differential which is the basis for all fx trading then with BOJ focused on maintaining a 10yr yield target sub 0.2% openly and UKTs trading 1.3% .
Any more positive rhetoric on May getting her deal done or a delay and the rest of the market shorts on GBP will come off taking GBP higher vs all peers. Until end of month its a pure political play