GBPUSD: Flag formation signals more GBP strength in offing
GBPUSD Another Dog that hasn't Barked
Today's price action shows big spikes either side of current price, denoting uncertainty on both sides of this fight.
But GBP has stood strong as the Dollar surges...what is it likely to do when the Dollar stops? Sterling has spent all
year defying the bears. By the look of the flag now forming that situation looks unlikely to change. Two strikes
(another retest is fine if it happens soon) means that so long as the lower parallel continues to hold up today in the
face of DXY strength GBP is a still a buy at these lower levels with stops below the parallel for small loss if wrong
here. And if so, and the lower parallel of the flag does give way GBP will likely fall away to 1.3237-1.3223 and then
bounce from there. As things stand though, GBP is showing underlying strength despite current weakness - and that
will remain the case so long as the flag formation remains good.
Ultimately GBP should hit 1.38 and above - about 500 pips upside and 30 or so down
Today's price action shows big spikes either side of current price, denoting uncertainty on both sides of this fight.
But GBP has stood strong as the Dollar surges...what is it likely to do when the Dollar stops? Sterling has spent all
year defying the bears. By the look of the flag now forming that situation looks unlikely to change. Two strikes
(another retest is fine if it happens soon) means that so long as the lower parallel continues to hold up today in the
face of DXY strength GBP is a still a buy at these lower levels with stops below the parallel for small loss if wrong
here. And if so, and the lower parallel of the flag does give way GBP will likely fall away to 1.3237-1.3223 and then
bounce from there. As things stand though, GBP is showing underlying strength despite current weakness - and that
will remain the case so long as the flag formation remains good.
Ultimately GBP should hit 1.38 and above - about 500 pips upside and 30 or so down