GBPUSD Near Term - and Medium Term swing set-up
Maybe about to get stopped out of the Sterling short trade here for a 10 pip loss (stop at 1.337)
If so, it's a small loss at least - but need to cover the implications from here, if struck ...
Sterling would then be likely to rally further by about 90 pips to 1.3475 - but intend to close down
any near term longs there as it has become such a key area of interest, with fixed/static resistance
from the summer period meeting dynamic/moving resistance from the highs - therefore a likely
point of maximum impact/interest if it gets struck over the next day or two...
So in the event that 1.3480 is broken on the upside by more than 15 pips (and any subsequent
pull-back is then supported around the 1.3470 mark) Sterling would be making quite a big
statement: 3 years and 3 months of downtrend is finally at an end, bringing more swing traders
into the market...so will go long again at this point if we happen to see that little pull-back, (with
stop about 20 pips below here at 1.3448 for small loss if wrong) looking for 1.363 initially, then
a move up to test the upper parallel, followed by further strength to 1.4062.
So 590 pips potential reward for 20-30 pips or so risk, if struck.
DOWNSIDE for Sterling
So if the short from 1.327 (stop at 1.337/8) gets taken out that's 10/11 pips blown - and if it
doesn't will be looking to let it run a little, but only back to 1.3143 ish for 130 pips or so profit.
No way can swing traders turn aggressively bearish of Sterling again unless and until it breaks
below 1.3029, which would create a 250 pip downside target at 1.2777.
Maybe about to get stopped out of the Sterling short trade here for a 10 pip loss (stop at 1.337)
If so, it's a small loss at least - but need to cover the implications from here, if struck ...
Sterling would then be likely to rally further by about 90 pips to 1.3475 - but intend to close down
any near term longs there as it has become such a key area of interest, with fixed/static resistance
from the summer period meeting dynamic/moving resistance from the highs - therefore a likely
point of maximum impact/interest if it gets struck over the next day or two...
So in the event that 1.3480 is broken on the upside by more than 15 pips (and any subsequent
pull-back is then supported around the 1.3470 mark) Sterling would be making quite a big
statement: 3 years and 3 months of downtrend is finally at an end, bringing more swing traders
into the market...so will go long again at this point if we happen to see that little pull-back, (with
stop about 20 pips below here at 1.3448 for small loss if wrong) looking for 1.363 initially, then
a move up to test the upper parallel, followed by further strength to 1.4062.
So 590 pips potential reward for 20-30 pips or so risk, if struck.
DOWNSIDE for Sterling
So if the short from 1.327 (stop at 1.337/8) gets taken out that's 10/11 pips blown - and if it
doesn't will be looking to let it run a little, but only back to 1.3143 ish for 130 pips or so profit.
No way can swing traders turn aggressively bearish of Sterling again unless and until it breaks
below 1.3029, which would create a 250 pip downside target at 1.2777.