GBPUSD suffered heavily in recent weeks. It lost approximately 1500 pips without any retracement to speak of. Now it trades at a level which can serve as a springboard. In my opinion $GBPUSD is ripe for a bounce.
Check the 15-min chart and see for yourself. Looks like a dependable base to me. If there is any such thing as dependable. Anyway, clearly something to trade against and speculate for higher prices in the coming sessions.
Sentiment at lows
Sentiment on the pound must be at lows with all these absolutely horrific news. Brexit disasters painted every day. Nobody is bullish the pound it seems. Anyway, you know that logic, everybody has already sold the pound…which never makes sense to me, because someone was on the other side of those sellers and bought from them. But, and that’s a but I find more appealing: Taking out a prior low and utilizing triggered liquidity to either offload shorts or build longs makes a lot of sense. Let’s see if there are any big boys out there playing the pair in that direction.
* Ok, always remember, no investment advice here. I write these posts for myself and entertainment purposes. Take responsibility for your trades and analyses and don’t ever blame me or anybody other than yourself. I might or might not be positioned in the instruments I write about.