Whilst I have been keeping a lazy eye on it since the previous post, it has also been on the back burner as the price action (including the initial upper break to 1.570) lacked conviction, hinting at a complex correction. Needless to say I got stopped out on the previous suggestion but remained quietly confident as swing high was to materialise.
Last week's Bearish Engulfing candle strongly suggest the prominent swing high has been seen and for further weakness to materialise over the coming weeks. The suspected swing high also failed to retest the 200 week MA and we now trade just below the 50 week MA. The candle itself may well be too large for many to trade but we could make an assumption that any bullish rally within last week's range is an area to consider fading into, assuming an eventual break below last weeks low.
Alternatively we can wait for a break below 1.5328 (last week's low) before seeing bearish setups on D1 or below. Either way my overall bias remain bearish, leaving it a question of timing and entry price.
Cable appears unstable below 1.58
Tops can take a frustrating length of time to form and GBPUSD has been no exception of late, which produced a cheeky upside break before selling off in one of the most bearish week in months.