Failure to hold 1.35+ has seen a move below the 1.3461 breakout level
Catalyst: EURGBP bounce back above .8500 has been a weight on GBPUSD while EURUSD lags and trades a tight range. See upcoming article on using crosses to trade spot currencies.
Page 6
IS BTCUSD bid or bid in an offered market?
Answer: Jury is out unless 65525 is firmly broken (came close) on the upside or 60/61K is broken on the downside
If you followed our USDCAD posts you will learn a good lesson on how directional signals can come from a break of a pattern trading around a key round number.
In this case it was a break of a 12-day pivoit around 1.,42.
Trying to correct but upside stays at risk while 7528 holds as support.
If not, then fallback is 7500, which keeps a bid as long as it holds.
Momentum trying to build to the downside (2 blue AT lines followed by a break of 29091, brief so far) and dependent on 29K (more psychological than technical) holding to [prevent exposing the key 28678 low.
Back above 29091, would cool but then 29592 needed to negate the risk
Consolidating between 83.45 and 86.58 on this 4 hour CFD chart
For the current rebound to build further momentum, 88.00+ would be needed (87.68 on this chart)
Expect choppy trade to continue while within 4000-4100 with key levels outside of it at 3983-4103.
This leaves 4060 as a neutral bias (sentiment) setting level (currently trading below it in a tight range).
It is said that one picture says a thousand words. In this case it is these two charts indicating the impact of EURGBP on GBPUSD over the past two days (i.e. market having more trouble absorbing the GBPUSD side of the cross flow).
Note how GBPUSD (lower high) and EURGBP (higher low) are mirroring each other.
A lower GBPUSD high (2 blue AT lines) indicates time for a pause where 1.35 needs to hold to keep a strong bid with fallback support as long as it trades above yesterday’s 1.3461 breakout level.
Keep an eye on EURGBP, which has bounced today, and taken some pressure off the GBPUSD upside, suggesting whatever sell order was behind the GBPUSD surge yesterday has been filled.