GBP/USD. To consider longs on any sustained basis, 1.4551 must break. Price rises are corrections.
GBP/USD. Bottoms. 1.3891, 1.3856. Range points today only, 1.3838, 1.3823, 1.3745 V 1.4013, 1.4029. Break of 1.3745 targets next range 1.3653 while break 1.4029 targets 1.4109. Overbought sell point None. GBP like AUD and NZD contains serious deficiencies in the curves. GBP is oversold yet this curve is a mess. How about today’s range is 7 pips to offer example of misalignment GBP.
Significant supports are built in at 1.3891, 1.3892 and throughout 1.3800’s at 1.3886, 1.3882, 1.3873.
For GBP, must trade the ranges and caution. I don’t have much more to say about a GBP daily trade, longer term, its going lower but significant supports exists. GBP as well is misaligned to its own pairs like negative GBP/CAD and significant correlation tops in GBP/USD Vs GBP/JPY, GBP/CHF, GBP/NZD and GBP/AUD. Until I view the longer term mechanics in GBP prices, I don’t have much to say. What still offers a clearer picture is EUR and EUR pairs.
Brian Twomey, Inside the Currency Market, btwomey.com