GBP/USD outlook continued

Even though the GBP/USD moved 400 PIPs last week, my strategy had a short-term buy signal yesterday; therefore, I entered going long on the GBP/USD for a short-term trade (the trade duration could be 24 hrs to a couple of days). I am currently up 110 PIPs from where I entered yesterday.

As I stated from prior posts last year, for the long-term, I am expecting the GBP/USD to go further down. Last July, I was taken by surprise when the GBP/USD reversed. It seems to be doing a simliar move from 2008 when it was also trying to delay the inevitable. If you’ve been keeping track of what the analysts at Dailyfx have been saying, it is very simliar to what is found here at LattePIPs. You’ll notice here, GBP/USD Daily Analysis, Joel Kruger has a longer-term bearish bias, but has recognized there could be a short-term bullish move. Jamie Saettele, who I highly admire from the standpoint of Technical Analysis using the Elliott Wave Theory, has posted here that the GBP/USD has already exceeded where he thought it would move. Jamie expects the GBP/USD to begin moving toward the lows of March 2010.

In the mean time, we’ll take long trades as they present themselves, and begin shorting the GBP/USD where appropriate.

Happy trading!

LattePIPs

GBP/USD outlook

As you can see here, GBP/USD Direction, the Daily and 4hr charts are in an uptrend. At this time, even the 1hr and 15min charts are in uptrends! However, with the 400 PIP upward movement from last week, I am hesitant to enter going long at this time. There will most likely be a correction coming up before it continues further up. I will be looking for when it begins its correction/retrace and keep everyone apprised.

Happy trading!

LattePIPs