GBPUSD - time for a long?

After a long period of relative lateral trading for the GBPUSD, I think it is now the time that this trend is broken and might see some upside.

The long and tedious BREXIT process seems like a never-ending saga and although  the clock is ticking, there has been some crucial updates lately. First of all, Labour opposition is now backing a second referendum whilst the Government is considering delaying BREXIT – This might be seen as a positive outlook for the GBP, at least for the short term.

When we look at the chart, Sentiment Index is slightly in favour for the down side (60%) although I really think that there is a better possibility of an increase in this pair.

First of all, the MACD has crossed over the upside which tends to be bullish.

Secondly, the pair seems to have found a support first on the 50 and then the 200 Moving average.

Lastly, the pair has also found support on the Kimura Trading ‘Range Indicator’ (yellow lines).

What are your thoughts on this?

Let us know in the comments box below!

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1 - Comment

Christian Buhagiar - 27 febbraio 09:16 Reply

As we can see from the pic, the pair has gone higher and higher! It is now facing another important resistance point. Interestingly, more traders are now positioned short than they were yesterday (67% vs 60%)....on the other hand I think there is still a good way to go on the upside until we reach the level indicated by the Range Indicator (yellow line).