GBPUSD is trading in a very slight ascending channel in the summer months following the dollar weakness. This is surprising considering that Brexit talks are not going well at all but nevertheless, we follow the market with 0 bias and simply react to price action.
If we plot a Fibonacci Retracement from the bottom of the channel and the beginning of August to the highs seen over the last week or two, we can see a perfect pullback to the 61.8% level, which is the key Fib level in most traders eyes.
From this pullback, price has since formed a perfect double bottom rejection of that 61.8% level with the pink highlighted zone.
Personally, any GU shorts will be short term as there is a lot of traffic to the left even with a break of the trendline.
Buying confirmation with seeing this current support holding on a daily timeframe.
If we plot a Fibonacci Retracement from the bottom of the channel and the beginning of August to the highs seen over the last week or two, we can see a perfect pullback to the 61.8% level, which is the key Fib level in most traders eyes.
From this pullback, price has since formed a perfect double bottom rejection of that 61.8% level with the pink highlighted zone.
Personally, any GU shorts will be short term as there is a lot of traffic to the left even with a break of the trendline.
Buying confirmation with seeing this current support holding on a daily timeframe.
