I’m only new at this, but in my opinion, the trend turned Bullish for both the Sterling and our Dollar in late June/early July, when their correlations with EUR/USD went out the window.
As far as the prevailing GPBUSD trend is concerned, how could you call it bearish when the July 2010 low has held for 2 years and counting? That’s some serious Bullish support – whether technical or psychological. The lower tops are there but the lower low’s just aren’t, in fact, the opposite; major lows have been getting steadily higher since September 2008. As such, I’d be hesitant to even declare a prevailing trend. I guess we’ll see what the pair does over the next few weeks/months, but either way, I think the case for parity is pretty damn weak.
Trendline Colour Key:
Blue – Confirmed Bullish
Light Blue – Unconfirmed Bullish
Red – Confirmed Bearish
Grey – Invalidated Bullish/Bearish
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