Gbpusd Will Test 1.4960

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Gbpusd is at incredible resistance, I cannot deny that. That past support area on the weekly just around where it’s currently trading has held like a rock before, and would appear to be holding right now. However, I also cannot ignore all the signs that are pointing to a further up move towards 1.4960.  Taking into account the fact that this pair bounced off of monthly support, formed weekly double bottoms, and is currently making higher lows that stuubornly climbed back above the hrly trendline, I have to conclude that the bullish momentum will move it up, at least to test the trendline on the daily timeframe. The red horizontal line on the daily chart below indicates the weekly resistance area. The green line points to the 1.4960 trendline resistance area that I am expecting to get hit.

Trading Strategy

Buy at an average rate of 1.4835, with a suggested stop loss below 1.4750.  Since we are at such strong resistance, I recommend scaling out of your positions and locking in at breakeven, as soona s you are positive about 30 pips.

Thanks as always for reading. All feedback is welcome.

When trading always use a stop loss and calculate the proper risk management for your account. This analysis aims at providing assistance to the forex trading community here at Winners Edge Trading, thereby helping them to make informed trading decisions.

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  • I am not sure what that means, but thanks for reading the article 🙂

  • hi Kj. Casey sure is! 😉 I'm watching now to see what develops. Have a nice day 🙂

  • Hi Nikola, I don't have a doji on my charting, but it is a bearish candle. I am open to other possibilities regarding direcvtion, so I am watching for trendline breaks in order to think short. Thanks a lot and happy trading to you 🙂

  • Hi Bindley. You're welcome, and thank you too, for reading my articles 🙂 If you follow me on twitter you will be able to get them as soon as they are released. I usually work on them after the trading room is over, so I try to get them out as soon as possible. Thanks again, and have a great day 🙂

  • Hi Vic. The 1 hr trendline got broken, and it is now testing the 4 hr line. This could mean that it has simply slowed down and will be bouncing, but so far I see no reason for re-entry yet

  • Thanks for your analysis. I have been reading them for the past two weeks. I usually get them by email about 1 pm in the afternoon. Is there anyway that I can get connected a bit earlier so I can follow the trade with you? What time are you online??

  • vik

    seems like the interest rate hike aint gonna happen anytime soon, hence the drop… your technical setup has been violated as well due to the break of 1,4750?

  • Xzecarvalhox

    obrigado

  • Loved seeing your and Casey's posts on Twitter. Right after another. At the moment, he appears to be a little more right… 😉

  • Maybe it is a bit early, but it seams we will have a doji candle stick for today and the whole pattern looks like evening star to me. GBPUSD might fall tomorrow if I'm right with pattern.

  • Thanks for the comment, Vic 🙂 There's a chance that it could go down as well, based on the resiatance, so it will be very interesting to see what actually happens. Happy Trading! 🙂

  • vik

    with the given speculation on interest rate hike due to the inflation, i wouldnt doubt it