GBPUSD, Technically A Good Setup But Fundamentally Worrying!
There is no other FX currency that is harder to trade at the moment and has been for the past months as the GBP!. To put this into perspective, the GBP is so erratic that it has become technically unpredictable to trade. These days due to ongoing brexit talks this pair and other GBP related pairs have been affected drastically. In my personal opinion any trading regarding this pair TECHNICALLY should be avoided until the BREXIT talks find a clear path. But nevertheless as i would personally avoid trading this i know some of you are still heavily trading this pair and i am just here to share my technical aspect on this pair and i hope it can provide some insight to back your claims when trading this pair.
Looking at the weekly charts of this pair, the price is sitting at a crucial support of around 1.26 level and the candlesticks shows hammers forming which just adds to the list of confluence technical factors that this pair might be headed up. Furthermore looking at the charts again the price seemed to be trailed by a descending long term trendline which just lies beneath the weekly 50 EMA.
The weekly 50 EMA can often act as dynamic support and resistance. The break of this trendline will provide the upside move to this pair but in my opinion in the process it should also break the weekly 50 EMA. To enter the LONG swing trade on the weekly charts, the price needs to break the 50 EMA and retest it thereby giving us a healthy risk to reward ratio.
For those that wish to DAY trade the image below provides the detailed technical picture as to where the price might head
As said before, this pair has provided an excellent technical picture to go LONG both on daily and weekly charts, however the fundamental factors are the driving force behind this pair at the moment. Its best to avoid trading this pair until the brexit issues are sorted out but i hope this analysis could provide valuable insight for those traders that neglect the brexit developments and trade this pair regardless.
Looking at the weekly charts of this pair, the price is sitting at a crucial support of around 1.26 level and the candlesticks shows hammers forming which just adds to the list of confluence technical factors that this pair might be headed up. Furthermore looking at the charts again the price seemed to be trailed by a descending long term trendline which just lies beneath the weekly 50 EMA.
The weekly 50 EMA can often act as dynamic support and resistance. The break of this trendline will provide the upside move to this pair but in my opinion in the process it should also break the weekly 50 EMA. To enter the LONG swing trade on the weekly charts, the price needs to break the 50 EMA and retest it thereby giving us a healthy risk to reward ratio.
For those that wish to DAY trade the image below provides the detailed technical picture as to where the price might head
As said before, this pair has provided an excellent technical picture to go LONG both on daily and weekly charts, however the fundamental factors are the driving force behind this pair at the moment. Its best to avoid trading this pair until the brexit issues are sorted out but i hope this analysis could provide valuable insight for those traders that neglect the brexit developments and trade this pair regardless.
