GBPUSD ( Midaz Trading Strategy )Rare Triangle pattern found.
The support & resistance around 1.255 mark would be the turning point for GU.
The recent spike up was due to
1) Oversold Gbp last month
2) Dollar weakening
3) Boris Johnson was out of intensive care unit
But, Lets not forget about the trade talks with EU.
Back then if there was no deal on the table, GU was headed for 1.13-1.15 range, things change, as UK could deal with other counterparts and prosper without the EU trade deal.
Therefore I see GU without the deal at its current economic state to be priced at 1.18.
Covid19 has yet to reach its peak curve , with the peak out of sight and the aftermath economic impact on the nations, it would be foolish GU could rally back to last month price this month.
Note that UK death ratio is much higher than US.
Looking back, where DXY was ranging at 99. Pound was fairly priced at 1.26-27 range.
With current economic circumstances in UK, That priced would have been downgraded.
I believe that USD safe haven status is still intact and would soar once stock market reverse back down due to poor earnings report.
Conclusion,
I'm waiting for GU to be above 1.25 before shorting it down.
Likewise if GU where to dipped further i would make a buy call on this, as i'm long biased, Targeting 1.22
