GBP/USD Hourly chart:
Weekly Trend direction: Bearish
Weekly trend reversal level: 1.9750
Resistance levels: 1.9700, 1.9750
Strategy: Whilst above the weekly trend reversal level, sell rallies to resistance levels after an entry signal.
Medium term: The trend remains bullish whilst above roughly 1.9200, but it is becoming mature and our medium term target is possibly 2.0000. As we approach the BIG figure at 2.0000 and indicators become extremely overbought, great caution is required, as swings both ways may be huge, random and very fast.
Today: Not very attractive to trade, with large swings in both directions and plenty of opportunity for traders to get stopped out. We continue to urge caution when trading cable (read medium term strategy above) and there is no sense in trying to predict the next move at this time. As weekly momentum is bearish, we will go with that for now, and look to sell rallies to between 1.9700 and 1.9750, allowing for another spike high to 1.9820. Watch for signs of topping before entering and keep stops fairly tight.
Weekly trend reversal level: 1.9750
Resistance levels: 1.9700, 1.9750
Strategy: Whilst above the weekly trend reversal level, sell rallies to resistance levels after an entry signal.
Medium term: The trend remains bullish whilst above roughly 1.9200, but it is becoming mature and our medium term target is possibly 2.0000. As we approach the BIG figure at 2.0000 and indicators become extremely overbought, great caution is required, as swings both ways may be huge, random and very fast.
Today: Not very attractive to trade, with large swings in both directions and plenty of opportunity for traders to get stopped out. We continue to urge caution when trading cable (read medium term strategy above) and there is no sense in trying to predict the next move at this time. As weekly momentum is bearish, we will go with that for now, and look to sell rallies to between 1.9700 and 1.9750, allowing for another spike high to 1.9820. Watch for signs of topping before entering and keep stops fairly tight.
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