Currently, the macroeconomic calendar includes data on Germany's GDP. The country’s output is expected to increase significantly to 2.0% from -1.8%. Besides, the Euro area consumer price index will be released. I expect the indicator to rise to 2.0% from 1.9%.
Attachment 397703Currently, the pound/dollar pair is moving at 1.3947.
According to the H4 chart, I can tell by following a rebound from local lows, the price has advanced and recouped almost all of its early losses.
Now there is a high probability that the quotes will continue their bearish run to reach the target level of 1.3920 and then to the support line, along which the price is currently trading. Moreover, the price may fall to the level of 1.3900.
According to the M30 chart, the price is trading in a strong upward trend. I expect the price to slide to the inclined level up to 1.3920
After that, the price is likely to break through the trend line or rebound from it and then gain strong upside momentum. In any case, it still makes sense to open short positions, hoping that the price will decline to the level of 1.3920 or even to the 1.3900 mark.
The pound/dollar pair may well go up, but its bullish movement is unlikely to happen due to the significant price level of 1.4000. In some cases, many buyers are expecting to start locking in profits, while many sellers will most likely start opening short positions. T
hus, I expect the quotes to drop to at least the level of 1.3920 or even 1.3900.
Attachment 397706Open position ratio:
According to the open position ratio, the majority of traders are sellers. Despite the fact that the crowd is selling, major players will most likely continue driving the pair up.
Although the crowd is selling, major players will most likely continue driving the pair up. And this time, such a scenario may repeat.
Have a profitable trading day!