GBPUSD - Cable looks oversold, but no reversal signal yet.
Just like CAD, at some point GBP can be as well a good trade against USD. Yes, it looks very oversold, but first we need to see some kind of reversal signal, before we can give any chance for a local bottom, and a possible pull back.
Daily (regular japanese candles):
Clear bearish trend, with acceleration in the last 5 days. Price sharply dropped almost as low as the lower line of the bearish trend channel. Price got very far away from Kijun Sen, sooner or later Kijun will try to attract Price back to equilibrium. But you never know when it will happen. You may think the drop is too much, but there is still some room, so do not rush to buy it until you see some kind of signal for a possible pull back. The first signal you will see on the lower time frame.
4 Hrs (with Heiken Ashi candles):
Totally bearish, and pretty much oversold. But again, no reversal signal yet! The first one that could force the pair a little bit higher will be a doji, or a green Heiken Ashi candle, when the Traded Price (normal candle) closes back above Tenkan Sen. In that case a pull back towards Kijun Sen will start, so the corrective target can be 1,5300.
However you can not be really bullish on Cable, not even on the 4 Hrs time frame, until Price trades below Kumo and Kijun Sen. Short term bearish Key support is clearly ard 1,5300, which level exactly matches the daily Tenkan Sen
No trade recommendation now, rather a call for those being short on the pair to watch reversal signals for partial profit taking.
Daily (regular japanese candles):
Clear bearish trend, with acceleration in the last 5 days. Price sharply dropped almost as low as the lower line of the bearish trend channel. Price got very far away from Kijun Sen, sooner or later Kijun will try to attract Price back to equilibrium. But you never know when it will happen. You may think the drop is too much, but there is still some room, so do not rush to buy it until you see some kind of signal for a possible pull back. The first signal you will see on the lower time frame.
4 Hrs (with Heiken Ashi candles):
Totally bearish, and pretty much oversold. But again, no reversal signal yet! The first one that could force the pair a little bit higher will be a doji, or a green Heiken Ashi candle, when the Traded Price (normal candle) closes back above Tenkan Sen. In that case a pull back towards Kijun Sen will start, so the corrective target can be 1,5300.
However you can not be really bullish on Cable, not even on the 4 Hrs time frame, until Price trades below Kumo and Kijun Sen. Short term bearish Key support is clearly ard 1,5300, which level exactly matches the daily Tenkan Sen
No trade recommendation now, rather a call for those being short on the pair to watch reversal signals for partial profit taking.
