FX.co ★ bridget.franecki | TST as the Foundation for Medium-term Trading

The same thing can happen on gbp/usd, but there’s a small nuance here. In order to consider a move along this red scenario, or even lower than 1.3327, it would be preferable to get levels that are not so elevated. Compared to yesterday, the whole channel has dropped, and that’s good, it gives some probability that we can get a decline. But the fact that the channel at the moment still has mostly free room to move upwards is bad, and such a red scenario looks very optimistic and doesn’t allow opening shorts. A move towards 1.3406, where the daily balance is sitting, should be expected, but watched closely. In the longer term I still expect a decline.