USD Index – Since breaking from the intraday channel formation to the upside there has been little net movement adding up to two days of relative inactivity. The bias is still to the upside but expect choppy trading on the way to 96.19 (current price 94.89).
GBPUSD – It's been choppy, mixed and limited price action for GBPUSD and while we expect some bullish price action this morning, we also anticipate it being limited. The 50% pullback level at 1.5273 has capped buying once more and very short timeframes are showing signs of exhaustion. If we look to a four-hour chart we can see that this trend line has capped price action in the past
It should also be noted that we have a four-engulfing candle pattern forming the high that still holds its bias.
There is scope for a move towards 1.5291 and possibly 1.5310 (AB=CD formation) but that is looking less likely as I write.
So bearish on GBPUSD but picking the prime entry level is far from easy.
GBPUSD – It's been choppy, mixed and limited price action for GBPUSD and while we expect some bullish price action this morning, we also anticipate it being limited. The 50% pullback level at 1.5273 has capped buying once more and very short timeframes are showing signs of exhaustion. If we look to a four-hour chart we can see that this trend line has capped price action in the past
It should also be noted that we have a four-engulfing candle pattern forming the high that still holds its bias.
There is scope for a move towards 1.5291 and possibly 1.5310 (AB=CD formation) but that is looking less likely as I write.
So bearish on GBPUSD but picking the prime entry level is far from easy.