Double top or breakout courtesy of Yellen
GBPUSD is clearly set up for some nice action later today. Yellen can bring this back down and create a nice double top. Depending on how market reacts to her speech we could see a test of the upper channel and either see a break or a touch and drop. I'm leaning towards the later.
Of course we just had fairly decent GBP figures so if market is relieved with what they hear (dovish speech) GBP might continue it's recovery and head towards levels we haven't see since the Brexit vote. If this happens I would wait for the breakout to settle and enter on correction and retest of broken upper channel.
BUT, my personal bias is bearish.
- RSI and stoch are lower
- PA is flat
- We are right at the upper level of the downward channel.
Of course we just had fairly decent GBP figures so if market is relieved with what they hear (dovish speech) GBP might continue it's recovery and head towards levels we haven't see since the Brexit vote. If this happens I would wait for the breakout to settle and enter on correction and retest of broken upper channel.
BUT, my personal bias is bearish.
Trade closed manually:
Opened a trade lower than planned because I was too late to the party. But those that did enter on time, congrats. This should continue to fall next week but a correction is possible.