Its a Saturday night (yes I’m doing analysis on weekend. Gota stay ahead of the game) and I’ve looked at my chart that compares GBP vs EURO, USD & JPY (That is the chart you can see above) and if I look correctly we’ve had a nice double top formation that was a perfect example of when to sell.
Now if we follow the flow of the chart we can see that since around the middle of August we had a nice break out to the upside and then we had a very slow downtrend to find some support. But take note of what we did next we decided to range before we see a breakout in around December to take for them highs and then we ranged again and then we went for a breakout for another high setup. Now we’ve formed a double top witch to me normally implies we need a pullback to generate a nice buying pool so we can take a go at the high again.
The main reason I could see us ranging is due to the pattern formation on this chart. Also, the dollar seems to be finding support here and there with dollar squeezes and due to Brexit and how that is treating GBP. GBP seems to be on a knife edge and any bad news about Brexit can easily turn a nice interday uptrend into a sell-off.
So with the dollar squeeze and euro gaining some traction via Brexit talks and bad news we could see a range trade set up. I won’t be posting levels on G/U or E/G or G/J until the market opens on Sunday night. Want to see what levels present them selfs from the market open.