GBP/USD: Trend Up?

Published 02/10/2017, 06:55
Updated 09/07/2023, 11:32

GBP/USD Chart

Last month I thought that though the bullet point was Mildly Bullish, the market was seemingly likely to enter a Neutral Phase for a bit...well that turned out to be wrong...or at least right but just for one day. On the second day following my commentary we had a Key Reversal Up and we took off upwards thereafter. We formed a new high and with a second KR Up and a couple of Bullish Golden Crosses helping and we punched through the upside of the recent Channel (now taken off).

Then indecision crept in. An Indecisive Doji Cross...almost but not quite a Bearish Gravestone Doji topped the market with the high and also coinciding with the 61.8% Fib of the whole of 2016's move at 1.3654. We've pulled back lower since then though still mainly indecisive with at least one Indecisive Doji Cross since the high.

As mentioned, on the Daily Chart above it looks mainly Indecisive whilst on a Weekly Chart we have a Bearish Tweezer Top and on the Monthly Chart we have just a Bullish Long White Marubozo...all together somewhat confusing and indecisive. I would add as mitigation that I also mentioned last time that:

If the market is to further retry the Bullish side then it must soon have consecutive closes over the key recent 50% Fib at 1.3019.

Though it is just in mitigation. Looking ahead, to be honest I see no need to change the bullet point above at the moment. No MAs are pointing down so I think Mildly Bullish suits, especially with the somewhat Bearish overhang of late last month's action above the market. This overhang action has a positive side, it has allowed me to draw a new Bullish Andrews Pitchfork based on the July - September action. We are resting right on the Centre Tine at the moment...so I'd be interested to see if it acts as support.

Support is currently at 1.3405 (dynamic), 1.3341, 1.3248, 1.3233, 1.3214, 1.3221 - 1.3211, 1.3077 (dynamic), 1.3064 and 1.2995 - 1.3015.

Resistance is currently at 1.3450, 1.3492, 1.3595, 1.3656 and 1.3733 (dynamnic).

As mentioned...bullet point stays the same.

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