The pound dollar broke down lower today to test the bottom of the channel. Price looks ready for a short term correction at least so we should see some upside in the coming week. The medium term trend can go either way and is tied with Jerome Powell fate.
BULL CASE
We should see price move up from here at least early next week, afterwhich if the macro situation does not change from here, we should see farther upside in the pair to test the top of the channel.
BEAR CASE
If Jerome Powell's time is up in the Fed Reserve, it is time for all US denominated pairs to break down lower, if this plays out, we will take a short at a breakout of the channel to the downside.
BULL CASE
We should see price move up from here at least early next week, afterwhich if the macro situation does not change from here, we should see farther upside in the pair to test the top of the channel.
BEAR CASE
If Jerome Powell's time is up in the Fed Reserve, it is time for all US denominated pairs to break down lower, if this plays out, we will take a short at a breakout of the channel to the downside.