Hi traders,
The GBPUSD asset was mainly controlled by dollar flows last week. Strong data out of the US economy support dxy shorts and eventually, we found a rally. This week I am using the Tom Demark's pivot indicator to determine a trend. It is showing we are bearish on the break of S1 and the stochastic seems like it is in a continuation to the downside.
The GBPUSD broke out of the consolidation pattern to the downside and kept below the S1 level briefly pulling back to it and extending past it before coming back to the lows of the week.
Price action on the GBPUSD looks as if its forming an ABCD pattern to the downside, if we can stay below the 130000 handle then its shorts only. Last time we came down here we found strong buying as shown by the wicks in the previous candles. If you are shorting it has to be on momentum.
all the best,
Aardall
The GBPUSD asset was mainly controlled by dollar flows last week. Strong data out of the US economy support dxy shorts and eventually, we found a rally. This week I am using the Tom Demark's pivot indicator to determine a trend. It is showing we are bearish on the break of S1 and the stochastic seems like it is in a continuation to the downside.
The GBPUSD broke out of the consolidation pattern to the downside and kept below the S1 level briefly pulling back to it and extending past it before coming back to the lows of the week.
Price action on the GBPUSD looks as if its forming an ABCD pattern to the downside, if we can stay below the 130000 handle then its shorts only. Last time we came down here we found strong buying as shown by the wicks in the previous candles. If you are shorting it has to be on momentum.
all the best,
Aardall