Short GBPUSD for week of 17 Jan, 2022
I can see many reasons to go short on GBPUSD next week.
1) The USD decline during the holidays may have ended. Note on the DXY chart, the solidly bullish (engulfing) candle formed on Fri.
2) Price is stuck at 1.370 region and failed to close convincingly above it during the last 3 trading days.
3) The 200dma is acting as resistance too.
4) The current move seems to have halted at 78.60% retracement.
Taking a trade at current levels presents a good R/R with target located just above 1.336, with the possibility to achieve a lower target. A small retracement perhaps to 1.370 would make it even better.
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Always use sound money and risk management in all your trades.
1) The USD decline during the holidays may have ended. Note on the DXY chart, the solidly bullish (engulfing) candle formed on Fri.
2) Price is stuck at 1.370 region and failed to close convincingly above it during the last 3 trading days.
3) The 200dma is acting as resistance too.
4) The current move seems to have halted at 78.60% retracement.
Taking a trade at current levels presents a good R/R with target located just above 1.336, with the possibility to achieve a lower target. A small retracement perhaps to 1.370 would make it even better.
If you like my analysis, please give it a “thumbs up” and follow me to get immediate notifications.
Always use sound money and risk management in all your trades.
Comment:
Nice movement, the stop was never approached. Hopefully, the move should continue next week and achieve the initial target.
