GBPUSD: Intraday trend analysis
GBPUSD appears to have an 8h timeframe trend here. There's risk of this becoming a 'Brexit flash crash #2' situation, considering how the intraday trend time and price target imply a potential turning point when the news come out. My reccomendation is, either to stand aside. I think the market will frustrate the most people, and not start a big trend, neither up or down, simply, staying in a larger triangle/sideways pattern consolidation.
If the market is range bound, fading the range extremes will prove to be profitable. I have my doubts about the dollar, since it appears to have a major topping pattern, but I reccommend caution here, perhaps it's best to trade after the news effects are known, so it might be feasible to trade technical short term trends, both up and down in FX, for a good while. If this indeed breaks up, then we could see a trend gain traction in the long term, which would be beneficial for emerging markets, and also give us more interesting trading opportunities.
Let's wait and see.
Cheers,
Ivan Labrie.
If the market is range bound, fading the range extremes will prove to be profitable. I have my doubts about the dollar, since it appears to have a major topping pattern, but I reccommend caution here, perhaps it's best to trade after the news effects are known, so it might be feasible to trade technical short term trends, both up and down in FX, for a good while. If this indeed breaks up, then we could see a trend gain traction in the long term, which would be beneficial for emerging markets, and also give us more interesting trading opportunities.
Let's wait and see.
Cheers,
Ivan Labrie.
The failure signal points to a drop to the blue box's target to the right.