GBPUSD traded lower this week again. The down move continued from 1.45 and Cable closed the week at 1.4380. I see is forming on . This is usually a sign. Looking at stochastics, we see oversold levels too. The combination of these two factor could provide good environment for bulls in the coming week.
GBPUSD: 15-30 min view
On intraday charts Cable moved lower and tested few times 1.4250. It looks very for now but as I mentioned last week, I think the downside could be limited from here. Cable is showing signs of reversal. data suggests, there could be some upwards pressure. The critical level for the breakout will be 1.4426. This is an upper border of descending channel/flag. We could see USDGBP dropping from there or the break to the upside would provide a long entry of retracements towards the same, upper border
As I keep my long bias, I think, the potential to the downside is limited. I will skip short entries and will look for long opportunities. Bears might argue otherwise.
Bulls @ 1.4430 after breaking the upper border
Bears @ 1.4430 with small SL.