GBPUSD - Consolidation then breakout
GU had a strong sell off, then hit a previous support zone around 1.3800. This is a strong psychological level, the best approach here is to watch and wait.
If we get a break above 1.3860 then we could look to go long with a target around 1.3920
If it breaks this zone and continues lower then look for confirmation to sell, targeting around 1.3690
I would stay away from short scalping at this point, it looks attractive but this is a strong zone and we could end up seeing big swings or just some consolidation as it is in a triangle pattern and might keep squeezing until it breaks out one way or the other.
Good catalyst to look out for is US and UK news, few high impacting news coming out in the next 6 to 12 hours from this post.
If we get a break above 1.3860 then we could look to go long with a target around 1.3920
If it breaks this zone and continues lower then look for confirmation to sell, targeting around 1.3690
I would stay away from short scalping at this point, it looks attractive but this is a strong zone and we could end up seeing big swings or just some consolidation as it is in a triangle pattern and might keep squeezing until it breaks out one way or the other.
Good catalyst to look out for is US and UK news, few high impacting news coming out in the next 6 to 12 hours from this post.
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