The slide in the GBP is unrelenting

You can write what you like about technical analysis and you can use it how you like. It will never tell you where a price is going but it will tell you were the price will have to ask a question

Here's what I wrote last Friday when the quid was falling down like a drunk at pub closing time

"I've seen the market loose love for the pound before but this could be getting scary very soon. 1.4500 is a door that if opened, could see cable fall down to the low 1.42's"

The premise was simple. There's a line that showed me where the market could ask a question. That was at 1.4530. Throw in the 1.4500 big figure and there was a basis for somewhere the price could falter. I went long, made a few pips but always the level was one that if broken could cause a further big drop

GBPUSD weekly

The next level that is of importance to me is 1.4230. Between there and 1.45 I have no real interest

I'm not writing this post to big myself up and say "look at me I told you so, aren't I great?". I'm writing this post because I'm seeing comments about how this fall is overdone, how it could bounce, when it could bounce.

The only time it will bounce will be when there's more buyers than sellers and until that happens it could go to zero. The reason we use the tech is so that we can avoid trying to catch that knife or where it could do us the least amount of damage. We also shouldn't fall victim to our own psychological make up that intrinsically says "It's gone down a whack, it must go up next"

The only reason you should trade this in either direction is that something backs up your thoughts and the greatest tool we have is technical analysis. One single magenta line on the chart above at 1.4530 defines where I will enter a trade. It defines where the price could go. Stay above and the greater potential is for it to rise. Go below and further falls are likely, until the next line. From a wider perspective I only have to worry about 2 horizontal lines not a 100 different indicators. TA doesn't get any simpler than that

Use the tech to give you that reason to trade and define your risk. Your mind, on it's own, will fail you