In my opinion this pair is a textbook situation for a coming bull move.
Participants want to push it higher, but we dont have the sentiment quite lined up, to make for a "perfect storm" breakout so that buyers start to accumulate positions.
Everytime it dips, there are buyers, pushing it higher again. I personally believe this recent dip to 1.60 is an important low, because the market formed a V reversal. Showing strong buying interest down there. This said as long as we are below the downward trendline there are still some risks to the downside, and i am not willing to enter before we break the trendline and the green rectangle.
Next week, we have the RBA rate decision on the calender, if we see some dovish talk, that hurts the AUD we could see this momentum shift expanding higher. Thats when i will be ready to enter my position.
There are not a lot of data releases next week regarding the GBP so i think, brexit news and developments could take the center stage. If we get hints that a scotish referendum wont likely take place or something similar, this will be a strong fundamental support for the GBP. This would also be a scenario where i would like to engage in GBP longs.
So as always in my opinion the evaluation of the fundamentals is the most important part of trading. Technicals are secondary and they will show you good places to enter, but fundamentals decide what will happen in first place.
Blessings to you all.
Participants want to push it higher, but we dont have the sentiment quite lined up, to make for a "perfect storm" breakout so that buyers start to accumulate positions.
Everytime it dips, there are buyers, pushing it higher again. I personally believe this recent dip to 1.60 is an important low, because the market formed a V reversal. Showing strong buying interest down there. This said as long as we are below the downward trendline there are still some risks to the downside, and i am not willing to enter before we break the trendline and the green rectangle.
Next week, we have the RBA rate decision on the calender, if we see some dovish talk, that hurts the AUD we could see this momentum shift expanding higher. Thats when i will be ready to enter my position.
There are not a lot of data releases next week regarding the GBP so i think, brexit news and developments could take the center stage. If we get hints that a scotish referendum wont likely take place or something similar, this will be a strong fundamental support for the GBP. This would also be a scenario where i would like to engage in GBP longs.
So as always in my opinion the evaluation of the fundamentals is the most important part of trading. Technicals are secondary and they will show you good places to enter, but fundamentals decide what will happen in first place.
Blessings to you all.
