Trade77; GBPUSD And 1.5880 7am

Hello Traders, I’m Mani and I’m the writer of Trade 77 section, please follow me on twitter for further updates.

Again price is near 1.5880 level and it seems that now bears are there as we know a broken support will become resistant and vice versa.

You can see in chart above that 488EMA has held the price nicely in the four hour timeframe and price bounced off this EMA after hopeless UK GDP release.
Price have to close above 1.5880 before considering that bulls are again in action, so watch the price action here carefully. Cable is now looking for some fundamental decisions from BOE because of their inflation problems so I recommend do not take longer term swing trades and wait for some confirmations.

Also I have to note that weekly H&S pattern is still forming and it seems that right shoulder has formed completely around 1.6059.

Make sure that you are following me on twitter so you can be informed of any trade calls for this pair and if you found this post useful let your followers to read it too, so please retweet this article with the button above of the article.

Kindest Regards

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  • Anonymous

    Hi James, Thanks for your comment and accuracy. This is one of my styles in price action trading. I like to see what is holding the price and in this case I will examine so many moving averages and will find the best one as it acted better before. This is the example of this issue.
    Thank you again for reading the article and commenting, I do appreciate it.

  • Hi Mani,

    I would also like to know why you use the EMA (488). Surely the point of using technical indicators is that many other traders use them and act upon these common signals. However I have never come across anyone else who uses a setting of 488, so it seems like a strange choice.

  • Anonymous

    It’s acting as a support/resistant level.

  • Anonymous

    It’s acting as a support/resistant level.

  • Okehiedon

    What is the relevance of the 488 ema?