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GBPUSD is turning nicely down as expected, now already beneath the channel line which is an important evidence for a trend change as we talked about in our recent updates. Notice that a decline from 1.4514 is also done in impulsive fashion which is another indication that bears are becoming stronger than bulls. That said, we may see a continuation down to around 1.3839 area in the days ahead, but maybe after a pullback into wave two.


gbpusd, 4h

USD Index

USD index is turning higher, now trading above 95.97, where an overlap makes an important step towards bullish view as bearish impulse is now invalidated. That said, we see first signs of a low in place especially as the leg up from 94.60 is also quite sharp so it can be the first wave within a new recovery that is headed up to around 98.59 area, towards the termination point of a red wave 4). If we are correct, then wave 2 pullback can be interesting to track for more dollar strength after a completion of a set-back

USD Index, 4H