GBPUSD - Long - Looks like we've seen the bottom for now
It looks like we may have found a double-bottom for the pound. 2/3 very bullish candles over the past 3 days suggests that traders are more optimistic about the Pound now and some positive retail news has given sterling a lift.
Price has broken sideways resistance on 16-Aug with a bullish engulfing bar and now rests above 21 daily EMA. This could be the start of the rise back up, however we should remember that technically we are still in a downtrend and if sentiment changes again, this may be seen as a pullback.
However, post-brexit this is likely to be a rocky ride, as there are plenty of negative news announcements likely to come out about Streling in the months ahead and there's still a lot of uncertainty, which could send price lower again, so it's important to keep the SL wide. I'm hoping that the daily 21 & 8 EMA's will provide support but this has yet to be tested.
Hopefully next week we may see an 8/21 EMA crossover which would likely provide a boost to the pair. Buckle up for what's probably going to be a bumpy ride!
Price has broken sideways resistance on 16-Aug with a bullish engulfing bar and now rests above 21 daily EMA. This could be the start of the rise back up, however we should remember that technically we are still in a downtrend and if sentiment changes again, this may be seen as a pullback.
However, post-brexit this is likely to be a rocky ride, as there are plenty of negative news announcements likely to come out about Streling in the months ahead and there's still a lot of uncertainty, which could send price lower again, so it's important to keep the SL wide. I'm hoping that the daily 21 & 8 EMA's will provide support but this has yet to be tested.
Hopefully next week we may see an 8/21 EMA crossover which would likely provide a boost to the pair. Buckle up for what's probably going to be a bumpy ride!
