GBP/USD - Next week
We have a strong downwards channel that has been formed over the course of the past two days especially. I was bullish on Cable up to a point, and that point has come...
Take a look at the daily chart attached, stochastics are in overbought mode, and are now beginning to point down, even if very slightly. In addition, AC has turned red. Could be a sign for the next few days.
However, longer term we have a different story. Look at the weekly chart attached. We have been headed up for the past couple of weeks. There was a retracement to the 23.6 level, before bouncing back up.
So overall what could well happen next week is, we'd have some bearish attributed being executed, albeit this wouldn't be for too long. I do not think it will touch the 38.2 level, though it should cross the 23.6. From then, it remains to be seen whether Cable will push up further next week or the following (meaning past 1.5530).
And concerning next week, lets just hope we don't get another huge gap as we got this week!
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