Follow-Through In GBP?

The past week, while we’ve seen some swings, hasn’t really been too directional in the broad sense. Yes, it has an underlying dollar bullish outlook, but it can hardly be called a trend – unless we broaden the outlook to the daily chart.

Even then, since the Brexit referendum, EUR/USD has basically remained in a tight range while the losses in GBP/USD appear to have almost been a knee-jerk reaction. To be honest, I can’t see a firm daily trend developing any time soon…

So basically, we appear to have a hit and run and pullback… and sleep and snore outlook in the current overall picture.

As far as I can see, today looks like following through from Friday. Although, while I don’t expect any fireworks (because we’re coming to temporary intermediate barriers that will generate a correction), it’s down to the whimsy of the market to decide whether it will be brief or long. In the current semi-mid picture, all appears to be on track and if nothing else it is still constructive.

So it’s a case of patience and taking the low road, awaiting the high road, but the broad swings continuing in the current fashion of deep Wave (b)’s of Wave (iii)…

It should be a steady, if relatively limited move today…

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