GBPUSD making technical breaks of the downtrend.
GBPUSD has traded for a while around the 76 fib recently. This would be a high potential area for the bears to take control again but instead this has broken and held retests. This could be the first major failure of the GBPUSD downtrend and put us into a strong up-move. GBPUSD has been in somewhat of a crash against the USD for a long time. Since at least the first Brexit. Ranges and shallow rallies, then spells of hard down moves. If we've made a low for that style of action, the mean reversion move would typically be expected to be extremely strong.
As is so often the case, when GBPUSD made the wild 500 pip move; that was the low. If there's one thing I've learned in my FX lifetime is 500 pip moves are often the end of moves.
Ref:
Now we're getting into the first levels where we can differentiate a correction from a reversal in GBPUSD. It looks like the level for a correction has failed, and the bias is now firmly towards us being in a reversal unless we can break back under the previous support base low.
As is so often the case, when GBPUSD made the wild 500 pip move; that was the low. If there's one thing I've learned in my FX lifetime is 500 pip moves are often the end of moves.
Ref:
Now we're getting into the first levels where we can differentiate a correction from a reversal in GBPUSD. It looks like the level for a correction has failed, and the bias is now firmly towards us being in a reversal unless we can break back under the previous support base low.