GBPUSD price is currently 1.2344 at the time of this post. GBPUSD has risen a lot in the past couple days. I believe this to be a short-lived bullish move.
There are 3 reasons I think this based on the weekly TF. See attachment.
Red line - This acted as support for a long time and then failed. Price closed below this line for 2 weeks in a row and then became bullish. Then the line failed again. I expect price to fall back below this line once again. This would mean at least a 200 pip drop from current price.
Yellow line - Another long-term support line broke and is in the process of being retested. Price must not move the whole way back up to this line, but only a good amount of the way for this to become a bearish signal. So price may move up a little more, but I expect price to fall because of this. When it does, it will be a bearish move which is a few hundred pips at least.
Purple line - Price is at overhead resistance. Price may move a little above this line, but I expect it to hold.
Not pictured - Near the middle of the chart, there is a candle with a long bottom wick near the 1.2400 level. Which is about 50-60 pips from current price. Price may move up to this level briefly before it starts falling hard.
