GBPUSD Trade Idea

Jan 29, 2021

In yesterday's analysis, I discussed about the short opportunity on GU due to the short-term weakness, but during yesterday's early NY session price found bullish momentum pushing it back towards 1.3740 key daily resistance. In today's analysis, I'll be using the 4h chart to provide a better clarity in the market. After some re-assessment, GU has been respecting the 150ema & 200 ema relatively well, seems like GU is constantly creating higher lows, the corrective behaviour does not provide us enough opportunities for a home run. To activate any breakout long setups, we need to see 1.3740 key resistance zone clearly breached but be very cautious of potential probe like how it occurred on 14th & 27th Jan if you dropped down to the 1h chart. To activate any reversal setups, we need to see price again rejecting the 1.3740 key resistance zone.

However, do not forget the overall trend on the higher timeframe remains bullish, avoid over-trading in such market condition.

Trade safe.

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Jan 29, 2021

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