GBPUSD to test again Monthly PP, then short?

After breaking the M_PP which also represents a very important structure in the past, (Brexit levels) the price continued to move further down the chart and making a new low. The pressure on pound should continue as the greenback gains strength and we expect in the longer term a break of the M_S1 and a test of M_S2 which represents lows of the after-brexit period. We will expect a test of the M_PP for this week and if this happens we will look to short at this area. Our analysis will be proven invalid if the price closes above the M_PP and makes a new higher high compared to the nearest lower high.

Comment:

GBPUSD did no give very much price action until now this week. It had very limited movement until now, trading in the middle price levels between M_PP and M_S1. Until now we do not have any pending order for the pair so we will be waiting for a possible move up to reach the M_PP levels and then get short on the pair.

Comment:

The overall market mood for the GBPUSD pair was bearish this week, with price now testing the M_S1. The bulls were unable to push the price higher at the beginning of the week to the M_PP levels at 1.34234 where we had our sell order placed so this position was not filled. Today we got long on the pair as it touched the M_S1 in anticipation of a bullish move, so now we will have to see if this zone will be enough to hold as support for the price.