In examining the GBP/USD chart as well as our proprietary “Gasline” indicator notice the Weekly (Bottom) chart. The green line has moved above the zero line and into a plus indication. This indicates its flirting with a buy signal. The dashed circle at lower right points it out. At the end of this week we will replace the circle with a thick green vertical line the Weekly quant continues to exhibit strength.
The Daily (Center) chart is below the zero line. This is signaling short term daily weakness, a daily sell signal.
Both lower charts indicate that in the short term GBP is trying to shift its trend to the upside. Taking BPY lower over the short term only to run them up within the larger weekly trend.
The weekly sell signal that started the week of January 24th has lasted four weeks. At this time it appears that it wants to come to an end. Overall it has been a weak move and has been trading sideways since. Both daily and weekly math Quants will confirm a change in trend.
BPY/USD Short Term Outlook
