My Opinion is GBPUSD is BULLISH rest of 2016 !!
It is not one picture or moment of any chart that should determine your trading, but what is causing price action to go a certain direction. When you breakdown the GBPUSD, start at Monthly & Weekly charts- I see that price action going on this start of 2016 has been at record LOWS. Question is How Low Can This Pairs Price Action Go? Not much...
I think per GBPUSD 1 hour chart & last weeks price action which still shows major TREND is Bullish, it will continue. Per daily date and price range bar (orange square area) noted over last weeks price action, it took three days to go up 0.03320, then it dropped back into the middle or 50% zone on Fib retracement indicator before close of last week. This price action area on a Fib retracement area from .618 to 50% to has the highest turn around area for any pair. Price action hit the major trend line (black), but didn't break. Also, angle of major TREND line (black) is in between 35 to 45 degrees, which shows price action last week was in balance (not to steep or fast or slow) at this time.
If noted Bearish supports are broken on chart, they will become resistance area or ceilings at this time, but I see only Bullish price action related to the British Pound being stronger and U.S. dollar being weaker at this time. As, always, look for chart patterns (engulfing, harami, pin-bar, etc...), respect trend line and S/R areas and have a new reason to enter into any new trades based on sound decision making. Money management is key, so make any new trades when your have a minimum of at least THREE reason's or more... then business of success will happen naturally.
On this pair, I will wait for EMA's to cross over each other, chart pattern to happen or breakout of a tight ranging PA areas to enter into any CALLS this next week. Right at this time, per last two days of PA is Bearish, but be cautious.
I think per GBPUSD 1 hour chart & last weeks price action which still shows major TREND is Bullish, it will continue. Per daily date and price range bar (orange square area) noted over last weeks price action, it took three days to go up 0.03320, then it dropped back into the middle or 50% zone on Fib retracement indicator before close of last week. This price action area on a Fib retracement area from .618 to 50% to has the highest turn around area for any pair. Price action hit the major trend line (black), but didn't break. Also, angle of major TREND line (black) is in between 35 to 45 degrees, which shows price action last week was in balance (not to steep or fast or slow) at this time.
If noted Bearish supports are broken on chart, they will become resistance area or ceilings at this time, but I see only Bullish price action related to the British Pound being stronger and U.S. dollar being weaker at this time. As, always, look for chart patterns (engulfing, harami, pin-bar, etc...), respect trend line and S/R areas and have a new reason to enter into any new trades based on sound decision making. Money management is key, so make any new trades when your have a minimum of at least THREE reason's or more... then business of success will happen naturally.
On this pair, I will wait for EMA's to cross over each other, chart pattern to happen or breakout of a tight ranging PA areas to enter into any CALLS this next week. Right at this time, per last two days of PA is Bearish, but be cautious.