Dollar bulls have been beating Pound since the start
of European session. However, gbp/usd has gone around 100 pips for today and
that is close to average daily range for the pair. Another point in favor of a
reversal is that the pair has just reached and went a little beyond Friday’s
lows. From daily perspective that is an extreme point and a bounce is highly
likely.
One more point in favor of a reversal upwards is the
fact that most moves in major currency pairs stall around 16:00 GMT when big
market sharks take their profits for the day or even reverse their positions.
So, I assume the low for today has been made and now we need to wait for some
candle reversal pattern.
Oh, yes. I almost forgot one more point that
supports my idea about gbp/usd turning around and starting rising! It now sits
on 200 sma on 1 hour chart. That is a strong argument for closing all shorts
and contemplating a long. Let’s wait some 45 minutes to get some confirmation
whether big short positions are being closed or not. Next support level is just
5 pips lower at 1.5575.
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