GBP collapsing soon ?

I last wrote on GBP's possible return of the bull on February 24th and April 16th., since then GBP has rallied from 1.49 to its recent high of 1.70 on August 5th. Now it may be time to take another look at this market.

From its daily chart, it seems that a bearish Head & Shoulder may be in formation. And I also note this bearish formation is complimented with a bearish divergence at the MACD and the Stochastic. And the ADX has been falling and below its 20's signal line which is confirming a lack of trend for the past one and a half month. But as the MACD has already crossed down below its zero signal line and have been forming a series of lower peaks and lower troughs, I am getting increasing bearish about this market.


The weekly chart is confirming the daily chart's range bounding as prices remain caught within the Bollinger Bands and the band is now squeezing while the weekly ADX has also been falling. All these are all confirming a lack of trend. But as the band has been squeezing, this is usually forewarning us an explosive move may be forthcoming soon. At the time of writing, the weekly MACD has already crossed down (since today is Thursday, you would need to check again by tomorrow's closing to see whether it stays negative). The Stochastic has also crossed down and now going below its 50's signal line which is generally more bearish. And there is 2 tacit bearish divergence found at lower D+ and Stochastic peaks in relation to higher prices.

Though the general consensus around the world now is that the USD will "die" due to the obvious. I am one of those very fews that feel otherwise about the USD as I think it may be plotting for an extremely strong return (July 14th and September 6th postings) . Of course if I am correct on the USD's emerging bull, then the GBP should get floored fiercely accordingly.