Hey tradomaniacs, looking at GBP/USD I can see a possible long-scenario in order to continue the trend. Technicals: The previous fakeout by DXY caused a sell-off in GBP/USD which has resulted in a fakeout and close above the key-support, trendline and 61,8% Retracement-Level. GBP/USD recently broke out of its consolidation and has now retested the area of possible bullish confluence. It is likely to see another UP-WAVE which would be the third and so extended wave to trade (Very attractive to trade). Fundamentals: The previous NFP-Data were overall bearish for DXY as the positive Figures were a confirmation for the current low monetary policy of the FED.
The market will probably price in more liquidity for the market and so more inflation in the USA which will probably boost EUR as it has a weight of 57,5% in the US-DOLLAR-BASKET. The only concern I have is a previous post from London saying that the economy does not recover as good as expected and that a further easing is likely to happen.
This is a dovish sign for the POUND and could so may give us a nice chance to buy EUR/GBP as I expect a better performance by EURO against DXY . LEAVE A LIKE AND A COMMENT – I appreciate every support! =) Peace and good trades
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