CVecchioFX3e
Short

GBP/USD Bearish Wedge Back on Track after BoE, NFPs

FX:GBPUSD   British Pound/U.S. Dollar
This is a follow up and an expansion on our GBPUSD             chart posted last week (see link to related ideas below).

The recent rejection of $1.5660/1.5700 has resulted in a loss of the uptrend from the July 8, 9, and 24 lows. In context of the potential longer-term pattern - a bearish rising wedge that commenced with the break in price on July 7 and subsequent rejection of wedge TL support as resistance on July 15 - it looks like the next leg lower in GBPUSD             is beginning.

The key level to watch into the end of the week is ~$1.5460, the swing low in the countertrend rally on July 24. A weekly close below this level would offer a confirmation signal for a move lower (further supported by H4 and daily indicators spilling over into bearish territory). Key levels lower to watch come in at ~$1.5315 and ~$1.5160.

Bears may find risk contained to $1.5635, the pre-BoE "Super Thursday" high in price on August 6. Still, with resistance having established itself in the $1.5660/1.5700 area (as noted in the chart from last week), gains may be difficult to come by on the long side; the path of least resistance is lower.
HamzaLeith
a year ago
Down is more likely indeed (one more retest of that broken black line first?)
snapshot
Reply
Pip-thief
a year ago
My concern with the short idea is that whilst i agree price is set for further falls, the actual price structure from 13th April is still in tact, even with the two wedge breaks. Consider also that a rate increase is all but confirmed, which is obviously bullish for the pound, i would be more comfortable going long on pull backs and support areas. The pound is in good health which isn't a foundation for shorting.
+1 Reply
Ideas Scripts Chart
United States
United Kingdom
India
España
Italia
Brasil
Россия
Türkiye
日本
한국
Home Stock Screener Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Billing Sign Out