GBP/USD is too risky for trading, waiting for confirmationstarting with the monthly time frame we are in a clear downtrend and this trend has been broken.
so we expect that the price will continue going up.
the double bottom formation is completed and we expect that the price will pull back to test the neck of the "W" formation and then going up.
that aligns with the string area in the monthly time frame that is treated as a strong support and resistance area, so we are expecting the price will reject it and going down.
weekly time frame shows the rejection for the monthly area.
the daily chart we are in a strong uptrend and this trend treat the price as support and resistance.
so this is too risky right now for trading GBPUSD because we are in a sensitive area.
using COT report that shows us how hedge funds and big banks are doing with the currencies, shows they are interested in shorting GBP more than buying it.
so we should be careful and drow another small uptrend and waiting for a breakout of it with rejection for the strong monthly area and that will low the risk for our trading.
if the price breaks the monthly area and closes above it, then we look for buying opportunities.
becareful...
