GBPUSD Trading Strategy For This Week : 01-05 July 2019
The previous week’s recommendation and analysis is still valid for GBPUSD.
GBPUSD Trading Strategy For the Week : 24-28 June 2019
As expected in last week’s analysis, GBPUSD price bounced from 1.2507 level just above the trend line support. Trader’s who took the long recommendation near the trend line support had an excellent risk:reward setup of 40 pips : 250 pips. We recommend close any longs above 1.2760 based on the below analysis:
GBPUSD price has made a strong pullback after a prolonged sell off and is will test the support turned resistance level of 1.2765. This level is also the 38.2 fib level of the most recent sell-off.
GBPUSD is expected to find resistance at 1.2770 – any push above this level is likely to invite sellers from 1.2840 (50% fib) which can be used as a level to set stoploss.
GBP has mostly gained on the back a US Dollar weakness, but board based weakness and downtrend on is likely to continue. The month end flows could usually plays its part if pushing the price a bit more in the direction it moves.
If the expected reversal from 1.2765 level may find some support at the daily Pivot at 1.2715 or the cluster of Moving Averages currently at 1.2460 levels (100 hour, 200 hour and 20 day). Break from these levels will confirm a well defined Head & Shoulder pattern which could bring in more sellers to take GBPUSD to 1.2500 again.
Recommendation for this week:
Short GBPUSD @ 1.2770 to 1.2820 with SL above 1.2850 for Targets 1.2715, 1.2660 and 1.2500.
GBPUSD Trading Strategy For the Week : 16th June 2019
The UK political situation points to Boris Johnson as the next PM, renewed talk of “No Deal” Brexit and EU not considering re-negotiating the deal – all point to a lower GBP.
GBPUSD may take some time to move towards the lows seen in January, 2019 since USD has been getting weaker with no progress in Trade Talks and the tone of Fed expected to be dovish. But the slide towards 1.2400 seems imminent.
Any bounce towards 1.2760 will provide ideal short opportunity for traders with tight StopLoss above 1.2800 level. This will provide traders with an excellent risk:reward trading setup.
Traders can consider the opportunity to go long around 1.2500 levels keeping the trend line support as support – Only factor supporting going long would be the over sold conditions with no significant re-tracement seen in over seven weeks.