GBPUSD, surprises in week 3, expectations for week 4.
GBPUSD, an interesting pair which exhibited a situation I known as a trend reset. In week 3, our analysis showed that GBPUSD would be heading for a drop, which it did, for the first half of the week. I was holding on to my short and eventually, the dip earned me about 14% increase on my overall equity.
The unexpected bullish move came after the dip, it went all the way up and cleared the high of the week, creating a new high. This move sort of "stunned" me during the week and I did not enter any position after taking my profit. From the movement, it seems that a strong bullish force just took over, and I was waiting to see if a reversal pattern would be created and thereby dropping the price back down. It didn't, so I did not enter the short. I was in a short mindset for week 3, in the end still no other shorting opportunity, thus I waited for the rest of week 3.
The trend reset that I identified would reset the level count and it is currently at bullish level 1, even though it seems like a double stop, but I doubt it is. If you would like to short, I propose to wait and see how the price moved for the first half of week 4 to have better clarity of the direction of EURUSD. I would be maintaining an overall long outlook as I identified the movement in week 3 as a trend reset, and is currently in level 1 bullish zone.
If you have any thoughts on GBPUSD's movement for the coming weeks, please share them below, I look forward to learning and staying profitable together. Please help me like this analysis, and follow me for my weekly updates!
The unexpected bullish move came after the dip, it went all the way up and cleared the high of the week, creating a new high. This move sort of "stunned" me during the week and I did not enter any position after taking my profit. From the movement, it seems that a strong bullish force just took over, and I was waiting to see if a reversal pattern would be created and thereby dropping the price back down. It didn't, so I did not enter the short. I was in a short mindset for week 3, in the end still no other shorting opportunity, thus I waited for the rest of week 3.
The trend reset that I identified would reset the level count and it is currently at bullish level 1, even though it seems like a double stop, but I doubt it is. If you would like to short, I propose to wait and see how the price moved for the first half of week 4 to have better clarity of the direction of EURUSD. I would be maintaining an overall long outlook as I identified the movement in week 3 as a trend reset, and is currently in level 1 bullish zone.
If you have any thoughts on GBPUSD's movement for the coming weeks, please share them below, I look forward to learning and staying profitable together. Please help me like this analysis, and follow me for my weekly updates!
