The GBPUSD is still summiting near the peak of its recent rally, and traders wonder whether the cable has enough strength left to continue climbing. The continuation of the rally would be subject to whether the currently developing swing high manages to surpass the previous one. And the fact that the price action is presently probing a psychologically significant resistance raises the stakes even more.
Meanwhile, if the price action were to change directions suddenly, there is a high probability that this will demonstrate a forthcoming downtrend. Such a reversal will underpin the emergence of a Dead Cat Bounce, which is a pattern that typically signifies the likely creation of such bearish trends.
The present week is filled with top-tier events and economic releases in both the U.S. and U.K., which look poised to stir heightened volatility on the GBPUSD. The dollar continues to strengthen as the U.S. economy recuperates, in line with the concomitant fiscal and monetary policies in the U.S. On the other hand, the sterling bulls also remain hawkish, given the better-than-expected recovery prospects.
|Short Term||Long Term||Net % Gains|
|74 PIPS||0||80 PIPS||30 PIPS||
|80 PIPS||30 PIPS|
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