GBPUSD Channel developing and Potential Break to the upside
On weekly timeframe GBPUSD had broken the ascending channel very long ago that resulted through the brexit vote. A bounce off the potential golden ratio of 61.8 is likely a scenario that might happen. see the image below
Considering the above, On the daily charts a nice descending channel has been in play for a while now since the pound sell off began. A potential break to the upside is a likely scenario here and will take a few weeks or days to develop
FUNDAMENTAL ANALYSIS OF THE GBPUSD
The cable has been hit hard by brexit talks over the months, furthermore the USD has been on a relentless upclimb due to fed wanting/staying on target to raise the rates a further two more times this year. However Looking at the bigger picture here, the pound has never been lower since the brexit vote was casted and it has been on an upclimb due to a good looking economy as well. Judging by this the brexit talks will be a issue but i can see the pound bouncing back
Commitment of traders report
Sentiment in the market has not been that great for the CABLE recently and large speculators keep dumping the pound position in favour of other FX currency. The strength of the USD has also been very strong so far but overall a bounce off the 61.8 and break of the channel is in sight
Shortly the pound has never been this lower as per 1996 and a smooth recovery to the upside is still in play and perhaps its the beginning of the third elliot wave in the GBPUSD since the brexit vote
Considering the above, On the daily charts a nice descending channel has been in play for a while now since the pound sell off began. A potential break to the upside is a likely scenario here and will take a few weeks or days to develop
FUNDAMENTAL ANALYSIS OF THE GBPUSD
The cable has been hit hard by brexit talks over the months, furthermore the USD has been on a relentless upclimb due to fed wanting/staying on target to raise the rates a further two more times this year. However Looking at the bigger picture here, the pound has never been lower since the brexit vote was casted and it has been on an upclimb due to a good looking economy as well. Judging by this the brexit talks will be a issue but i can see the pound bouncing back
Commitment of traders report
Sentiment in the market has not been that great for the CABLE recently and large speculators keep dumping the pound position in favour of other FX currency. The strength of the USD has also been very strong so far but overall a bounce off the 61.8 and break of the channel is in sight
Shortly the pound has never been this lower as per 1996 and a smooth recovery to the upside is still in play and perhaps its the beginning of the third elliot wave in the GBPUSD since the brexit vote
Comment:
Further Confluence!! Bullish Cypher formed on Daily timeframe. Awaiting a potential breakout of the channel before placing a valid trade entry. Might take a few days but its a high probability setup
Comment:
