01062023 - #GBPUSD

55
I was bearish dollar yesterday and said to look for longs at around 1.2381. DXY still ended the day green (due to EUR weakness) but GBP is strong and despite the deep dip, closed green. But that candle stick could be a hanging man (reversal candle)? The body of yesterday's candle is rather wide so it remain to be seen if that could be the top.

Today's candle is now red. Bias can be considered bullish given that price is above the zones. But I would expect a possible deeper dip again before price could go higher. Will be looking for price to trade within the zone, before further up, with 1.2395 as the PLOD. Short 1.2507 is it trades for at least a 30 pips move. In terms of the monthly candle which just closed yesterday, one important thing to note is we have a red monthly candle. Not that bearish looking and it is supported by the BZ. But if price trades above May's low, it could well break the support zones and it would be further downside. What we would like to see now is price to trade into 1.25-1.254 on a possible rejection; which would trigger a sell for a move much lower.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.