It is rather due to increasing general USD weakness! So if anyone wants to trade against the heavy bearish GBP trend, I'd suggest to do it so rather via long DXY. The USD Indx has quite some GBP weight too, yet you do not have a full GBP exposure against the USD. No one should fight such a strong trend unless we see some fundamental or technical improvement on GBP side!
I hope you understand what I mean. It can move higher, but long GBPUSD just can not be a good risk/reward strategic position alone.
Weekly: - Simply all Bearish. Not much sign of improvement. Unless that we haven't had a lower low in last 6 weeks
Daily: - Bearish, with some early positive divergences in haDelta, haOscillator - Key levels: 1,3170+ (possible short term retracement) / 1,3900 (strategic bearish support)
Comments
DerekUweri71
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Hello Kumo, I totally agree with your point of not going long on such a bearish £ and there is no fundamental change to the £. However, noticing the bullish set up and standing by while it rallies 150 pip as it did today can be ..... not sure what word to use. I wonder if this is a short term correction on the back of the CPI data today or if this is a reversal. I suspect the former.