Hello traders :) Today I will talk about the GBP/USD chart. If we look at the weekly chart, we can see that the trend is still bullish, just like the daily chart. So this suggests that bulls should dominate, at least in the short term. Also, if we include DMA (7x5) and plot it on a daily chart, it is clear that the trend is bullish. But what we have from pure price action is more reliable. We can see that the down channel is still in play, so this is still bearish, but we can also see the higher low that the pair was formed about a month ago. So the question is whether the bulls will have the power to make a higher high and erase all the bearish context or can we expect another shift down ... So when we have conflicting scenarios like this, you should know what will confirm which scenario. So, if you ask me, daily closing below 1.3500 and bears are the main ones, but when we talk about bulls, it's harder to say, because for their real dominance the pair needs to make a higher high (close above 1.3750) and break the channel down. Hence, I'd sit on my hands until the picture is pretty clear.
Trade safe and don't forget to keep an eye on DXY :)
Trade safe and don't forget to keep an eye on DXY :)