By: Doug Rosen
This pair maintains its bearish direction. Normally I start my analysis on the weekly chart but this time I will skip it since it's not really any different than last week. On the daily chart we made our pullback came close to the daily 5 then dropped a bit but looks like it wants to move back up and touch the 5 again before dropping further. Price is still riding the daily 5 ema.
GBP/USD Daily Chart
Moving over to the 4 hour chart it is obvious that price has made its 38.2 fib of the recent swing low and that the 13 ema seems to back up the 5 ema when its breached. As price may want to come back up and touch the daily 5 ema I believe it may also want to come back up and touch the 38.2 fib level once again with the 4 hour 21 overlapping this level forcing price down its merry way.
GBP/USD 4 Hour Chart
Moving over to the hourly chart we see that price is up against the 55 ema, however the ema's are beginning to braid so we don't want to consider terading this pair until the ema's begin to separate a bit. Moving over to the 15 minute chart we see that the 38.2 Fib of thr recent swing down just happens to overlap with Fridays low at 1.5490 which is consistent with the daily 5 as well as the 4 hour 21 so if price was to continue to pullback to that level, this is where I would look to short once I see a bit of red. If it doesn't reach that level then drops, I would wait for a break of 1.5430, wait for it to hit 1.5410, then retrace back to 1.5430 then enter a short. You can only be bearish with this pair at this time. I would not even consider a counter trend long the way this pair is looking.
GBP/USD 1 Hour Chart