GBPUSD Top Down Analysis

Hello Traders,

Here is the Top-Down Analysis of GBPUSD (Monthly, Weekly, Daily for direction and 4H for entry) for

Week 46 - Nov 09

M > Market is respecting downward trend-line as resistance. Price reached monthly resistance coinciding with the trend-line, got rejected and moved to the downside. We saw a W pattern, its neck also coincided with 0.618 Fib level on last bullish impulse, however price retraced to the upside failing to test the neck.

W > Price has pulled up till 0.618 Fib level on last bearish impulse. We now expect price to continue with downward move.

D > Price has faced rejection at daily supply zone creating a double top, We now expect a downward move. We can see bearish divergence.

As per COT GBP saw closure of Long and addition of few Short, in effect reducing net positions. BXY weakened during the said week but gained strength on account of weak dollar last week again. BXY has gained strength in 2020 on account of weak Dollar, positions held by Institutions as per COT do not speak similar language of strength. Hence a correction for BXY/GBP is overdue.

4H > Price is currently moving down after facing rejection at supply zone, we can also see bearish divergence.

Pair Correlation > GBPUSD has positive correlation with GBPJPY, GBPCHF and GBPCAD and negative correlation with EURGBP.

This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.

Thank You
AP17FX