Price is near two main resistance now and if and only if it breaks the last one it can continue pumping A. Black zone on the chart that is local resistance now B. Red zone: daily strong resistance zone on the chart
Targets and resistance ahead: A. 1.3845 B. 1.3800 C. 1.3740(some condition and breakouts is needed)
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Price is touching the first resistance zone (P: 1.3938)
@VasilyTrader, above that red zone is good area for sl
Dougle00
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I'm long for next months. In next weeks it could be sideways or fall a bit. I have two trajectories based on prior waves. Currently it is on the fast to the prior high trajectory so I'm long until this changes. A day full of econ reports for UK tomorrow will be catalyst for which path it takes. Fundamental reason for long GBP over coming months based on a combo of prior prices over recent years depressed by Brexit and COVID. Prior to that they were way higher. 90% of UK pop have antibodies now so it is one of countries least exposed to COVID moving forward and the risk of a no deal Brexit has gone away. Brexit issues do still loom but there is far less uncertainty.
Beyond this on technicals this is very much a DXY move and there is room for DXY to fall further. Dollar is deprecating due to inflation and Fed seems reluctant to increase rates or reduce stimulus so naturally the value of the USD should reduce vs counties that have lower differential of bank rate and inflation. In addition US stocks have gone mental over the last year and investors may be looking for other places to put their cash if seeing the end of a bull run. Lastly the US COVID rates are climbing and with lower vax rates to UK there is potent for more disruption in US.