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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