GBP/USD - Bearish flag breakdown = Double bottom reversal?..
- GBP/USD seems to be forming within a Bearish flag pattern signalling a near term bearish move
- If this move were to find support around the recent swing low level of 1.27 this could lead to the formation of a double bottom bullish reversal pattern
- Technically this bearish flag pattern I believe will send the pair lower for one more leg
HOWEVER
- USD weakness as of recent is limiting the pairs losses
- If we were to see a positive brexit outcome/better than expected, this could allow the support needed for this pair to form the reversal pattern
TWO SCENARIOS:
1. No deal brexit/May kicked out could lead to a break through this previous support level and a move lower
2. Brexit deal agreed, May kept as PM + Continued USD weakness, we could see a move up to mentioned neckline resistance and a possible break through to the upside
THIS IS NOT TRADE ADVICE NOR A TRADE CALL
- If this move were to find support around the recent swing low level of 1.27 this could lead to the formation of a double bottom bullish reversal pattern
- Technically this bearish flag pattern I believe will send the pair lower for one more leg
HOWEVER
- USD weakness as of recent is limiting the pairs losses
- If we were to see a positive brexit outcome/better than expected, this could allow the support needed for this pair to form the reversal pattern
TWO SCENARIOS:
1. No deal brexit/May kicked out could lead to a break through this previous support level and a move lower
2. Brexit deal agreed, May kept as PM + Continued USD weakness, we could see a move up to mentioned neckline resistance and a possible break through to the upside
THIS IS NOT TRADE ADVICE NOR A TRADE CALL