GBPUSD has formed a short term base. The trend score on my model has maxed out at -100 so some relief can be expected. I am looking for a pullback towards what should now be support to take a new long position. Stop loss on the position is 25 ticks lower. Idea will cancel at 4pm if now fill has been achieved.
No follow through on this idea so far. The support at 1.2260 is holding but I am concerned at the head and shoulders pattern that has formed on the hourly chart. Will hold over UK retail sales and see if that can shake off this pattern.
The bulls defended the level and formed a hammer candle on the hourly chart. The bear threat has not been seen off yet, but we have tested the recent swing low and closed above the previous close level. New longs can be taken here with stops below 1.2250, target 1.2320 on an intraday basis
Trade closed: stop reached:
No base formation this time.