GBPUSD has corrected for several weeks now. The momentum indicators are in oversold zone and the price action suggests the correction is over for now and we can see a small rally to 1.6930/80 zones where it could find resistance and start its down trend again. A small rally would also create a bearish head & shoulders patterns and the minimum target towards downside would be 1.6250. Long term charts indicate that a further correction is also possible but a good support area is found around 1.6250 zone where it would have its pit stop for next decline.
So what do we do? It depends if you want to be a counter trend trader or with the trend. Counter Trend(Go Long). With the Trend(Wait for rally to get over and then go short around 1.6980).
This is just my analysis. Any comments or views are appreciated.
Happy Trading!!
So what do we do? It depends if you want to be a counter trend trader or with the trend. Counter Trend(Go Long). With the Trend(Wait for rally to get over and then go short around 1.6980).
This is just my analysis. Any comments or views are appreciated.
Happy Trading!!