GBPUSD in Upward Trend Channel, Target at 1.365
Overview
The main view of this trade idea is on the Daily Chart.
The FX Cross GBPUSD is in an upward trend channel after making a historical low of 1.03595 on 26th September, 2022, it proceeded to make higher lows and higher highs. Higher lows within the trend channel can be observed around the 1.11519 and 1.18413 price levels which were made on 3rd November, 2022 and 6th January 2023 respectively. The higher highs of 1.14902 and 1.24468 were made on 4th October 2022 and 14th December 2022 respectively. The expectations are for the FX Cross to rally to 1.365. A negation of this view will be a decline to 1.155.
Technical Indicators
Several technical indicators support this uptrend. The Supertrend indicator turned to buy mode on 17th January while the Awesome Oscillator is above 0 and green. The RSI for GBPUSD is also above 50 and trending higher.
The intra-day trend following indicators of GBPUSD also show uptrends in the 15-Min, 2-Hr, 4-Hr and Daily timeframes. Short term support is observed around the 1.17 price level.
Recommendation
The recommendation will be to go long at market, with a stop loss at 1.155 and a target of 1.365. This produces a risk/reward ratio of 1.54.
Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes.
At the time of writing, I have exposure to GBPUSD.
The main view of this trade idea is on the Daily Chart.
The FX Cross GBPUSD is in an upward trend channel after making a historical low of 1.03595 on 26th September, 2022, it proceeded to make higher lows and higher highs. Higher lows within the trend channel can be observed around the 1.11519 and 1.18413 price levels which were made on 3rd November, 2022 and 6th January 2023 respectively. The higher highs of 1.14902 and 1.24468 were made on 4th October 2022 and 14th December 2022 respectively. The expectations are for the FX Cross to rally to 1.365. A negation of this view will be a decline to 1.155.
Technical Indicators
Several technical indicators support this uptrend. The Supertrend indicator turned to buy mode on 17th January while the Awesome Oscillator is above 0 and green. The RSI for GBPUSD is also above 50 and trending higher.
Recommendation
The recommendation will be to go long at market, with a stop loss at 1.155 and a target of 1.365. This produces a risk/reward ratio of 1.54.
Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes.
At the time of writing, I have exposure to GBPUSD.