The long-term outline of GBP/USD bears a striking resemblance to what occurred from 2000-2008 on DXY.
There may even be a fractal dynamic here.
Although I am a dollar bull, I suspect this means DXY is due a pullback which will fundamentally surprise the market.
I bias neutral on GBP but the outline at the moment is very bullish.
The potential fractal dynamic here is interesting and I believe it leads to a medium-term dollar pullback (even if there's a big spike in the short-term) and a GBP which will reassert itself.
The wedge on DXY which resolved during 2000-2010 led to a triple-bottom pattern which is strikingly similar to what we now see on GBP/USD.
DXY gained 40% over the years which followed this move so we may see a big revaluation of GBP/USD in the years to come in a similar vein as the dollar tops and begins correcting.
There may even be a fractal dynamic here.
Although I am a dollar bull, I suspect this means DXY is due a pullback which will fundamentally surprise the market.
I bias neutral on GBP but the outline at the moment is very bullish.
The potential fractal dynamic here is interesting and I believe it leads to a medium-term dollar pullback (even if there's a big spike in the short-term) and a GBP which will reassert itself.
The wedge on DXY which resolved during 2000-2010 led to a triple-bottom pattern which is strikingly similar to what we now see on GBP/USD.
DXY gained 40% over the years which followed this move so we may see a big revaluation of GBP/USD in the years to come in a similar vein as the dollar tops and begins correcting.
