30 Jun 2014
GBPUSD: Deeper pullback towards 1.6830 or 1.6730 long opportunities -2ndSkies
FXStreet (Bali) - According to Chris Capre, Founder at 2ndSkies Forex, GBP/USD remains too elevated to consider going long, although its underlying strength also makes it a pair too strong to considering selling.
Key Quotes
"After forming a mild 4 day corrective price action pullback, the cable has rallied off the 1.6950 level, and is once again pressing up against the multi-year resistance at 1.7060. Because of the quick recovery after the mild pullback, and the underlying strength, we will pass on selling at the major resistance ahead."
"On the other side of the coin, we'd like to be buyers, but the pair is too high in our estimates, and hasn't done the dirty work of clearing the major resistance ahead, so we'll wait for a deeper pullback towards 1.6830 or 1.6730 before looking to get long. Another scenario we'd be open to getting long on, would be a daily close above 1.7060, then waiting for the pullback to the role reversal level to get long."
Key Quotes
"After forming a mild 4 day corrective price action pullback, the cable has rallied off the 1.6950 level, and is once again pressing up against the multi-year resistance at 1.7060. Because of the quick recovery after the mild pullback, and the underlying strength, we will pass on selling at the major resistance ahead."
"On the other side of the coin, we'd like to be buyers, but the pair is too high in our estimates, and hasn't done the dirty work of clearing the major resistance ahead, so we'll wait for a deeper pullback towards 1.6830 or 1.6730 before looking to get long. Another scenario we'd be open to getting long on, would be a daily close above 1.7060, then waiting for the pullback to the role reversal level to get long."