Current Market Description:
On the monthly timeframe, price is still underneath the bearish Trendline which was created in November 2007 when price climaxed at 2.1000. Since then price has been slowly trickling down; Price touched the Trendline in June 2021 at roughly, 1.42500, then got quickly rejected to a new all time low of just over 1.0000. 18 months later, price has touched the descending trending again at around 1.29000, this month March 2024. Since then, we haven’t seen a strong bearish rejection since touching the trendline this month which could suggest a shift in the market structure. Drawing a Fibonacci retracement on the monthly time from the touch of the Trendline June 2021 to the Lower Low in September 2022, we can see the touching of the descending Trendline aligns with the 0.618 Fib Level, adding more confluence to any bearish trades.
Overall Bias: [BEARISH]
Technical analysis wise with the monthly Fib level touching 0.618 & the touching of the Trendline this month (March 2024) I’m still bearish on this pair. Fundamentally, the two pairs are both under achieving at the moment as of 15th March 2024 as the the US FED is planning on cutting interest rates in June/July 2024 & The United Kingdom still officially in a recession.
On the monthly timeframe, price is still underneath the bearish Trendline which was created in November 2007 when price climaxed at 2.1000. Since then price has been slowly trickling down; Price touched the Trendline in June 2021 at roughly, 1.42500, then got quickly rejected to a new all time low of just over 1.0000. 18 months later, price has touched the descending trending again at around 1.29000, this month March 2024. Since then, we haven’t seen a strong bearish rejection since touching the trendline this month which could suggest a shift in the market structure. Drawing a Fibonacci retracement on the monthly time from the touch of the Trendline June 2021 to the Lower Low in September 2022, we can see the touching of the descending Trendline aligns with the 0.618 Fib Level, adding more confluence to any bearish trades.
Overall Bias: [BEARISH]