From the weekly perspective, the overall trend of GU is bearish, and the continuation of the bearish trend is expected.
From the COT perspective, hedge funds are bearish bias on GBP, more shorts are opened, net position huge in negative, from 4k of net positions and now -22k net positions, therefore, a push to the downside for all GBP pairs are expected.
The proper way to approaching this pair is to waiting for the price break below the daily support area and retest it, then we can see a clear previous support now turned resistance. If the price is managed to do this, I will switch to 4h perspective looking for short confirmation, if the 4h will provide to me one of my rules, then I will take a nice short on GU with a good RR. Shorting at daily support is not a smart way since the overall trend in 4H perspective is still bullish, the price may easily push to the upside!!!
Remember, always reactive to the market instead of predictive it, this analysis is based on the technical and COT perspective.
Comment below let me know you thought on GU.
From the COT perspective, hedge funds are bearish bias on GBP, more shorts are opened, net position huge in negative, from 4k of net positions and now -22k net positions, therefore, a push to the downside for all GBP pairs are expected.
The proper way to approaching this pair is to waiting for the price break below the daily support area and retest it, then we can see a clear previous support now turned resistance. If the price is managed to do this, I will switch to 4h perspective looking for short confirmation, if the 4h will provide to me one of my rules, then I will take a nice short on GU with a good RR. Shorting at daily support is not a smart way since the overall trend in 4H perspective is still bullish, the price may easily push to the upside!!!
Remember, always reactive to the market instead of predictive it, this analysis is based on the technical and COT perspective.
Comment below let me know you thought on GU.