Commentary on the GBP/USD

Forexmentor.com Forex Trading Price Action

If you take a close look at the monthly, weekly, daily and 4 hour charts for the GBP/USD pair, you will notice that the pair is in a distinct downtrend. Add to that the fact that the dumb money is aggressively shorting the pound, and the Big Dogs are net long the US dollar, and you have a recipe for being on the short side of this pair.

Sure, price spiked up today on the lower level charts, but I see that as a counter-trend move, and a great opportunity to pull the trigger on the short side. The 200 EMA on the 4 hour chart has been trending down through this upturn in price – so, the bias DOWN! That’s the advantage of looking at price action top-down.

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