GBP/USD: Head and Shoulder with Weakness
- 4H: A quick 4H look at the GBP/USD. It is still bullish. since beginning of June, rising in an upward channel. The RSI may be dipping, but price hasn't yet, so in the short intermediate term this pair is still bullish. The previous post noted to look for topping action near 1.52, so at 1.5140, we may be a tad early.
- We have some temporary topping that may bring some retracement, but a break below 1.48 would suggest return to the bearish outlook.
- 1H: The 1H chart shows momentum trying to turn bearish, but failing to cleanly break below 40. Price action shows a head and shoulder pattern with a more complicated right shoulder. The neckline is being tested. Over the first half of the European session, I noticed that many currencies were paring losses against the USD and JPY. However the sterling was not able to hold any attempts in paring its losses.
- Relatively I saw that the GBP/JPY and GBP/USD were not able to hold there retracements, while the Euro, Aussie for example were. This starts to put the pebbles on the bearish scale in my outlook.
- However, because there are no signals yet, and the market has been bullish in the short-term, I am going to continue stalking the current rally for topping action.
Fan Yang Currency Analyst Commodity Trading Advisor
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