GBP/USD Signals Update
Last Thursday’s signal was not triggered as the price did not reach 1.6087.
Today’s GBP/USD Signals
No signal is given today.
GBP/USD Analysis
Last Thursday, I thought that this pair might find some support at 1.5900, but as it turned out we broke significantly below there before pulling back up on Friday. The action still looks bearish overall and we are in a long-term downwards trend, but it is very difficult to see what is likely to happen next because we do not have any nearby significant levels to work with.
We have not reached these lows for quite some time so we have to go back a number of months to find where support is likely to kick in. The most probable level that can be found is confluent with the psychologically significant number of 1.5750. Above us, there is nothing really before 1.6086, although as I wrote last week, there is local resistance at around 1.6020 that might provide a ceiling.
Overall I do not see much high-probability either way between these levels, and we are currently right between them. We will not reach either of these levels today, so it is very probable that Tuesday or Wednesday are going to set the direction for the rest of the week. If we can break above 1.6086 and stay there for any length of time later during this week, it would be a bullish sign.
There are no high-impact news releases scheduled today that are likely to affect either the GBP or the USD. It is likely to be a very quiet day.