GBPUSD, Let’s Get Ready
What a movement it has been since the BREXIT. GBPUSD went down from 1.4879 to 1.2914 with hardly any sign of recovery.
So is the downward trend going to carry on?
We wouldn’t say that. In fact we believe GBPUSD is oversold and getting ready for a rally. Surely it wouldn’t break the long term downward trend (at least we don’t expect that!). Especially after Bank of England’s (BOF) recent interest rate cut and a potential interest rate hike of FED after the high employment rate.
However we believe GBPUSD will start a sharp upward movement with the potential of 1.3800 to 1.3900 level. There will be a high sell off pressure at this level. Yet it can be pushed to lower 1.4100 level.
We will update our analysis at this point.
This cannot be considered as investment advice.