GBPUSD - Long Trading Idea on the 4h Charts.
Introduction:
Please read the full post before considering taking action.
GBP moves have been, over the past year or so, fueled more by Brexit news than any scheduled release of British economic reports. Still, reliable technical patterns are forming and trendlines are being respected.
As we stated in our previous GBPUSD idea, a descending wedge formed and successfully broke upwards. It failed to meet the pair's previous highs, all the while it is now forming a descending wedge of its own. It tested the previous wedge upper trendline twice and now it should meet its completion (or invalidation for that matter) soon. The RSI is already in the oversold area, but wedges usually experience divergences, which leaves room still for a lower low.
How to Proceed:
We laddered small long positions from this level until the last support, at 1.28.
Take Profit:
Our targets here are 1.31000 and 1.31500. Those targets, however, can be dynamically changed, i.e., according to live price action, should circumstances vary.
Stop-loss (Invalidation of Analysis):
Our stop-losses here are in the 1.27300 range.
Risks Involved:
Calling reversals during a trend is always risky business, and US-China Trade wars have made the market more reactive to political news.
Side-notes:
Please keep in mind that the markets have been reacting strongly to news these days, specially on smaller majors, such as the NZD and the AUD, which could create instability. We are trading the whole forex system here, not only a pair. These positions should be watched closely.
Please leave your comments below to inspire us to continue our work and don't forget to follow us! Feel free to send us a direct message with any doubts you might have and experience a great trading session!
Please read the full post before considering taking action.
GBP moves have been, over the past year or so, fueled more by Brexit news than any scheduled release of British economic reports. Still, reliable technical patterns are forming and trendlines are being respected.
As we stated in our previous GBPUSD idea, a descending wedge formed and successfully broke upwards. It failed to meet the pair's previous highs, all the while it is now forming a descending wedge of its own. It tested the previous wedge upper trendline twice and now it should meet its completion (or invalidation for that matter) soon. The RSI is already in the oversold area, but wedges usually experience divergences, which leaves room still for a lower low.
How to Proceed:
We laddered small long positions from this level until the last support, at 1.28.
Take Profit:
Our targets here are 1.31000 and 1.31500. Those targets, however, can be dynamically changed, i.e., according to live price action, should circumstances vary.
Stop-loss (Invalidation of Analysis):
Our stop-losses here are in the 1.27300 range.
Risks Involved:
Calling reversals during a trend is always risky business, and US-China Trade wars have made the market more reactive to political news.
Side-notes:
Please keep in mind that the markets have been reacting strongly to news these days, specially on smaller majors, such as the NZD and the AUD, which could create instability. We are trading the whole forex system here, not only a pair. These positions should be watched closely.
Please leave your comments below to inspire us to continue our work and don't forget to follow us! Feel free to send us a direct message with any doubts you might have and experience a great trading session!
Trade active:
All orders filled. We are expecting a bounce from this support level, as indicated in the graph. If not, stops are in place.
