The bear case that we predicted was fulfilled this week. Price struggled to find any upward momentum. The coming week will see more downside move for the pound dollar.
BEAR CASE
The price of the pound dollar should continue to find downside momentum and hit a pocket of liquidity at around the 1.3650 area for a short relief to the upside. After which, it will find some more conviction to the downside.
BULL CASE
As for the bull case, the pocket of liquidity will give the bulls, the much needed conviction to push price up higher. We should see price hit the 1.40 levels before trading sideways until conviction is found to either side.
BEAR CASE
The price of the pound dollar should continue to find downside momentum and hit a pocket of liquidity at around the 1.3650 area for a short relief to the upside. After which, it will find some more conviction to the downside.
BULL CASE
As for the bull case, the pocket of liquidity will give the bulls, the much needed conviction to push price up higher. We should see price hit the 1.40 levels before trading sideways until conviction is found to either side.