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!
There are two bearish patterns on D1 offering a sell between 1.31 and 1.327 with a final target 1.242. Yes, GBP is a buy as it has priced in all the bad things already, but looks like it will do the bottom once more.
xunnobi
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@Erland, 1.24 is a pretty low price. For the time being I am maintaining my long outlook for them. No trades no, focusing on USDCHF and USDJPY =)