GBP/USD is another “goes lower in the bad times” asset - this time in the forex market -
USD is the haven currency and GBP for whatever reason is deemed more risky.
GBP/USD had broken out to multi-week highs but stuttered since.
This could be a natural pause before the upside moment resumes or this is a ‘fakeout’ and we’re heading for another test of the rising trendline on the weekly chart.
We’d prefer not to guess which one it is but rather wait and see.
The 4 hour chart shows a large bearish engulfing candle at the end of the week, adding bearish momentum to the weekly ‘indecision’.
A break below support at 1.31 would open up a much bigger pullback with 1.29 sitting just above the 61.8% Fibonacci retracement level.
But that’s just what we think, do you agree or disagree?
Send us a message and let us know
Happy Trading! Jasper, WeTrade Market Analyst and Founder of Trading Writers.
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