Bullish GBP/USD, bullish USD/CHF, bullish USD/JPY and bullish EUR/USD. Hey, guess what? A bullish EUR/JPY. It was only AUD/USD that managed to see some “normal” development – although not that it really made much of a deal.
So what have we got now? Well, GBP/USD should see gains. EUR/USD should see gains. Oh, and USD/CHF should see gains. Should I have mentioned EUR/JPY? Well, ok it will make gains but limited and that will be due to the fact that we are likely to see a pullback lower in USD/JPY.
Since EUR/JPY is seeing an expanded flat, we’re likely to see limited gains only. The same can be said of EUR/USD. The outstanding pair is still GBP/USD that still has a way to go higher. Once that has found the high it should trigger a reversal back to the downside.
Once all that strange and wonderful development has been completed we should begin to go back to normality.