Long-term GBP sell setup (24th Jan 2020)
GBP/USD Sell setup
This is my outlook for the pound over the next few months although depending on a number of factors will determine how quickly the cable depreciation will occur. As a reminder, BoE are due to focus their monetary policy in the upcoming weeks as Brexit negotiations undergo and risk to the currency is renewed. It is also important to keep tabs on the current positioning of the US dollar and it's likelihood to strengthen going into the first half of the year.
Moving from fundamentals, my technical analysis looks closely at the expanding range from September 2018 high through to the December 2019 high. Price has moved in an expanding range and this has led to my thoughts that price perhaps is failing to break the 1.35+ handle. In the case price breaks the 1.35 handle, it's important to watch the volume as price enters that zone as a breakout followed by an instant reversal could occur. I will personally be looking for sell setups at the current level. Indication that the pound will rise instead will be IF we see a deep correction that remains UNDER the 1.35 level.
This is my outlook for the pound over the next few months although depending on a number of factors will determine how quickly the cable depreciation will occur. As a reminder, BoE are due to focus their monetary policy in the upcoming weeks as Brexit negotiations undergo and risk to the currency is renewed. It is also important to keep tabs on the current positioning of the US dollar and it's likelihood to strengthen going into the first half of the year.
Moving from fundamentals, my technical analysis looks closely at the expanding range from September 2018 high through to the December 2019 high. Price has moved in an expanding range and this has led to my thoughts that price perhaps is failing to break the 1.35+ handle. In the case price breaks the 1.35 handle, it's important to watch the volume as price enters that zone as a breakout followed by an instant reversal could occur. I will personally be looking for sell setups at the current level. Indication that the pound will rise instead will be IF we see a deep correction that remains UNDER the 1.35 level.
Trade closed: target reached