GBPUSD Top-Down AnalysisHello Traders,
Here is the Top-Down Analysis of GBPUSD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 48 - Nov 23
M > Market is respecting downward trend-line as resistance. Price reached monthly resistance coinciding with the trend-line, got rejected and dropped. We saw a W pattern, its neck also coincided with 0.618 Fib level on last bullish impulse, however price retraced to the upside failing to test the neck.
W > Price has retraced till 0.786 Fib level on last bearish impulse. We can now expect price to drop.
D > Price is now facing rejection at daily supply zone creating a double top, We now expect a downward move. We can also see bearish divergence.
As per COT GBP saw closure of Long and addition of Short, reducing net positions further, however N-R have added Long and closed Short and Commercials have closed both Long and Short positions - bringing Short for them to least in current year. BXY however has been gaining strength for past 3 weeks. GBP is seeing closure of Long since August, bringing overall position of Long almost same as position held by N-R. Open interest in GBP has also reduced during the same period.
4H > Price is currently testing daily support in its bullish move, we can also see bearish divergence, however we must see confirmed price reversal for taking any Short position.
Pair Correlation > GBPUSD has positive correlation with GBPJPY, NZDUD and GBPCHF and negative correlation with EURGBP.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX
