the daily chartist

GBP/USD recap for 08.01.2016

published 5 years ago

Pound ain't in the mood for anything with its steep decline since the start of the year. Price slightly corrected on the 23d and 24th December towards 1.48770 and from there was strongly sold and this selling continued 8 straight days. Week data and dovish comments are opening doors for the bears to do what they want. Still correlation with the other majors against the USD is now broken, so any strategy founded on correlation isn't working now as we can see the destruction of gbp/usd and where the euro is (usd/jpy also). For the pound now remains only the possibility to rise as on the monthly chart it is reaching strong post-crisis buy zone at 1.44740. Currently the price hasn't reached that level, so more shorts may be squeezed in for the price to touch it. This level is the all-time support/buy zone for the Pound and if it holds, we may see short-term correction towards 1.56154. Just hold on to those long positions yet. At first, we will need to see indications for change in the movement from the Pound.