GBPUSD emerging from years long bear trend and going back up

3 dic 2020

British Pound/USD is giving us signs that we might begin to see a reversal to the bear trend that has lasted for 13-14 years. 1Y TF white energy is just starting to move up and about to cross the 50 mid-line. Unlike in 2014, where the white energy failed to move above 50 and dropped back down along with green line as the price stair-stepped down, this time the red RSI is at a much lower position where the green line and the white energy may not bounce off of it again, and I think there is a decent chance we may see the white energy go above 50 mid-line in the next 1Y candle. In the meantime, in the lower TFs such as 6M and 4M, we are seeing signs of a budding upward momentum brewing as the price started going back up and above weekly 200 EMA that we have been trading under for almost 7 years now. It is likely to see GBP continue to appreciate for several more months before any mid-long term, months-long correction phase is to take place.

In the long term I personally believe that we are going to continue to see the price go up. For a long term investor, it may be a good time to started moving your assets into GBP seeing it has the potential to continue to rise in value. Alternatively, one could wait until the 1Y white energy crosses above 50 for confirmation of upward momentum before getting in. FOREX markets aren't necessarily a playground for scalpers; one could very well do swing trades with GBP. At this point, for the foreseeable few months, I do believe we are at a spot where a mid-long term swing long would be profitable.