08 Feb GBP Analysis

[tiankriek]

The violated Current Trend reistance line has now become support at 1.9385. The GBP is still situated within a no-go zone due to the fact that price is still outside the violated Current Trend range. Should price move back into this range and breach the 1.9330 low, we will adjust the Current Trend and look for short entries.


We initially thought that the 25-basis point cut by the BoE yesterday will force price past 1.9330, but to no avail. We will therefore stand back and wait for our inevitable bearish probability to unfold.



As we can see, that range between 1.9960 and 1.9330 is still intact. Our MACD still indicates bearish momentum and any 'bad' news from the UK will force price to breach this range to the downside, placing the GBP in a suitable bearish tradeable condition.