The GBP/USD has been consistently printing a cycle of lower ‘Highs’ and lower ‘Lows’ since mid 2014. The pair seems to have the perfect storm raging against it with US$ strength, helped along by the recent FOMC, and GBP weakness, courtesy of Brexit, and this would support continuation of this pattern. However, trends do not last forever and there will eventually be the print of a Higher Low and a Higher High. I’m not in the game of predicting when that might be but, rather, suggesting that traders keep an eye for this turn when it does trigger.
GBP/USD weekly: watch for any bearish continuation with another Lower Low, or, for the first hint of any reversal with a Higher Low. Traders would then need to look out for any subsequent Higher High.
GBP/USD 4hr: This was the last 4hr chart I had posted of the Cable. There had been a new TC LONG signal but I suggested waiting for confirmation by way of any bullish triangle breakout:
Bullish confirmation was never received and, then, FOMC triggered a bearish triangle breakdown to the tune of 180 pips:
- Bullish: Interestingly, any 61.8% fib reversal from here would bring price action back to the monthly chart’s 8-year bear trend line and to the S/R region of 1.50:
- Bearish: bearish continuation might head towards the 1985 Low circa 1.052.
GBP/USD weekly: showing that 61.8% fib of the last major swing low move is back near 1.50 and the 8-year bear trend line:
GBP/USD monthly: the 1.50 region is clear long-term S/R to target on any pullback. However, bearish continuation might head towards the 1985 Low circa 1.052 with whole-number pit-stops along the way: