GBPUSD September23rd Review

The week started with significant USD weakness on all majors and that has pushed GBPUSD much higher than we expected, the pair is trading now close to the resistance trendline that marks a bullish channel. We still look for a retracement to happen, based on price action(candle formation that show diminished momentum) and technical indicators(Stochastic and other oscillators are forming divergences in an overbought area).

The week started with significant USD weakness on all majors and that has pushed GBPUSD much higher than we expected, the pair is trading now close to the resistance trendline that marks a bullish channel. We still look for a retracement to happen, based on price action(candle formation that show diminished momentum) and technical indicators(Stochastic and other oscillators are forming divergences in an overbought area). Based on our last attempts to open succesfull shorts we think that new positions should be small enough to permit a re-entry in the case the surge continues and this also allows for add-in opportunities if we see price moving lower.

 

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