GBPUSD - Market Cycles - 7th March 2023
After an excellent bullish move from a low of at least 40 week magnitude in September 2022, GBPUSD starts to form a 20 week nominal trough. We look into the next moves in this report
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Analysis Summary
Sterling has consolidated since the surge from the low in September 2022. This was from a trough of at least 40 week magnitude and quite possibly 18 month magnitude. The 20 week component, which has been visually evident over the last 2 years (shown below on the medium term time frequency analysis) is due to trough very soon. The component is also present in commonality pairs - this can be useful if readers wish to take a position in a USD paired currency of their choosing, aside from GBPUSD.
Below composites of GBPUSD, EURUSD, AUDUSD and CADUSD increase the signal to noise ratio for enhanced isolation of the 20 week and 80 day ‘nominal’ components of interest: