Last week was bullish for both EU and GU, like expected, but GU kind of went above what I expected and what would make sense. Too big of a move, especially within the last 2 days, without any corrections. Didn’t make much sense to me and even though it might look super bullish, I expect it to drop next week. Not sure how much, but it could be a lot. When I learned something from trading the pound, its the fact that the scarier and bigger the upmove, the bigger the drop afterwards. It always feels like bulls or bears are trying to get the other guys out of the way first and then go the opposite direction. Next week the only news that are worth mentioning, are UK CPI on wednesday and BoE rate decision on thursday…and the market has been rallying because of bullish BoE talk, apparently, but this could be one of those “buy the rumor, sell the news” things…so no matter what BoE does on thursday, a drop should come. If it doesn’t come before that already, either way, I expect a correction towards 1.27 and below. EU chart is the same, bearish butterly on the H4 chart, which should take EU back below 1.08. As for USD, my target from 2 weeks ago was hit, so now bulls can take over again and lets see how far they will go, if I am right.
