Forex saw mixed trading on the last day of the week. One thing that remained stable was a downtrend in gbp/usd, the pair I have been discussing for the last few days. One more break down happened during European session right after London open, although the pair tried to go up during early European hours. Now the pair is at its’ February and January lows. For two months the pair is trapped between 1.6400 and 1.5950 levels, which is not a very large range for the pair. I expect gbp/usd to start going down sometime next week or in the beginning of April.
I am in a selling mood now and my target would be 1.5340 level. This would be the lowest level since August and December of last year. It was visited a few times but not broken. I do not know if those levels would be broken and a trend down will emerge. For the time being I have to see whether support at 1.5950 holds or not. The pair might start going down in waves or it can simply collapse through that level. In each case a trading strategy would be different. I will be closely watching price behavior around those levels on Monday and will make my decision then. Have a nice weekend. Tomorrow and the day after tomorrow I will write a few small posts about the action of some pairs that we saw this week. See you tomorrow.
Look at the two charts. The first deals with more global view gbp/usd is in, the second shows how you could have traded today's session in gpb/usd.
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Disclaimer
Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.