Hello Fellows!
I hope you are all doing great!
GBPUSD has traded roughly within a 200-pip range all of December last year and January this year. February saw it drop below the said range, creating a new one in so doing. Now the price seems to be creeping higher, breaking away from the new range. All of this has a patten in the making: The 'Bat'
Fundamentally, the pair might be in for a big fall considering the economic problems at large in the U.K. and strong reports coming out regularly in the U.S. Also, keeping in view the Fed minutes, it doesn't seem like rates in the U.S are going to see cuts anytime soon. A few economists even predict the opposite, but that might be far stretched. The BoE, however, looks set for a cut.
Anyway, the question is, is this finally the point where the larger trend turns bearish? Only time will tell. Presently though, there seems to be a 'Bat' forming on the 4H tf. It can also be seen on the Daily but the candles there seem to be misleading.
The idea is to enter at the 88.6% XA retracement, marking the D point completion.
There can be 2 places for stops; the first will be above the X point or somewhere around 1.2790, while the second will be above the 28th December 2023 high. It would be recommended to split your positions, go for smaller lot sizes.
TP will be even trickier. If I entered, I would like to hold it to see if it breaches the A point, but it would be advisable to book some profits at 61.8% AD retracement.
I personally wouldn't place a limit order just yet, but rather wait and look for further confirmation.
Take care, trade safe and stay dandy!
Note: The information created and published here is not prohibited, doesn't constitute investment advice, and isn't created solely for qualified investors
I hope you are all doing great!
GBPUSD has traded roughly within a 200-pip range all of December last year and January this year. February saw it drop below the said range, creating a new one in so doing. Now the price seems to be creeping higher, breaking away from the new range. All of this has a patten in the making: The 'Bat'
Fundamentally, the pair might be in for a big fall considering the economic problems at large in the U.K. and strong reports coming out regularly in the U.S. Also, keeping in view the Fed minutes, it doesn't seem like rates in the U.S are going to see cuts anytime soon. A few economists even predict the opposite, but that might be far stretched. The BoE, however, looks set for a cut.
Anyway, the question is, is this finally the point where the larger trend turns bearish? Only time will tell. Presently though, there seems to be a 'Bat' forming on the 4H tf. It can also be seen on the Daily but the candles there seem to be misleading.
The idea is to enter at the 88.6% XA retracement, marking the D point completion.
There can be 2 places for stops; the first will be above the X point or somewhere around 1.2790, while the second will be above the 28th December 2023 high. It would be recommended to split your positions, go for smaller lot sizes.
TP will be even trickier. If I entered, I would like to hold it to see if it breaches the A point, but it would be advisable to book some profits at 61.8% AD retracement.
I personally wouldn't place a limit order just yet, but rather wait and look for further confirmation.
Take care, trade safe and stay dandy!
Note: The information created and published here is not prohibited, doesn't constitute investment advice, and isn't created solely for qualified investors