GBP/USD: Forecast: Possible short then long
Here is what to expect in GBP/USD
RECAP:
In our previous analysis GBP/USD was trading at 1.38170, we expected a retracement from this level back to 1.38000-137800 before continuing its uptrend and GBP/USD did exactly that. Reaching highs of 1.38680, triggering our buy stop at 1.38400 which we closed at 1.38600 after noticing a bearish shark formation on the 4H chart, locking 400 pips on GBP/USD over 20 positions. GBP/USD could not break past this new resistance as DXY was approaching previous support at 90.4-90.3
WHAT TO EXPECT:
Currently GBP/USD is bearish and we expect it to continue being bearish till 1.37500 range which was previous resistance for the pair. A break below this will see the pair going back to previous lows of 1.37000, 1.36800 & 1.35600.
Meanwhile a bullish butterfly has formed on the M30 chart signaling a potential reversal, if confirmed GBP/USD will go back to 1.38600 and try and break the new resistance at 1.38600 enabling the pair to reach new high around 1.39000 range.
GBP/USD is still within the ascending channel.
Long term GBP/USD is still Bullish
OUR POSITIONS:
Buy Stop Positions remain the same see previous analysis
Sell Stop @: 1.37300
Sell Stop TP1 @: 1.37000
Sell Stop TP2 @: 1.36500
Previous analysis linked below
RECAP:
In our previous analysis GBP/USD was trading at 1.38170, we expected a retracement from this level back to 1.38000-137800 before continuing its uptrend and GBP/USD did exactly that. Reaching highs of 1.38680, triggering our buy stop at 1.38400 which we closed at 1.38600 after noticing a bearish shark formation on the 4H chart, locking 400 pips on GBP/USD over 20 positions. GBP/USD could not break past this new resistance as DXY was approaching previous support at 90.4-90.3
WHAT TO EXPECT:
Currently GBP/USD is bearish and we expect it to continue being bearish till 1.37500 range which was previous resistance for the pair. A break below this will see the pair going back to previous lows of 1.37000, 1.36800 & 1.35600.
Meanwhile a bullish butterfly has formed on the M30 chart signaling a potential reversal, if confirmed GBP/USD will go back to 1.38600 and try and break the new resistance at 1.38600 enabling the pair to reach new high around 1.39000 range.
GBP/USD is still within the ascending channel.
Long term GBP/USD is still Bullish
OUR POSITIONS:
Buy Stop Positions remain the same see previous analysis
Sell Stop @: 1.37300
Sell Stop TP1 @: 1.37000
Sell Stop TP2 @: 1.36500
Previous analysis linked below
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.