- Recall GBP was weakest currency measured against Gold. That picture has not changed.
- Monthly : Downtrend. In consolidation now. May find some support around 1.59 but will be ugly if we go below.
- Weekly : Resembles the Copper weekly (which I am long). But the difference in the 2 monthly charts means we have to approach the 2 differently. GBP/USD weekly consolidating to go down, Copper consolidating to go up. Context is all important.
- In short - little reason to be long. If forced to make a trade, I will sell cable.
2 comments:
Thanks for the post. Fundamentally short term drivers are definitely bearish. Plus being next to Europe ain't helpin either. That 1.59 level is pretty much key like you said and most indicators are pointing to a break below. Overall I'm bullish longer term. I'll have to watch that 1.59 level… Any thoughts on NFP this week?
No special thoughts. As a chart trader, I am supposed to be blind to events and act on price only.
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