GBPUSD Daily, short; RSI oversold and resistance respected
Updated
Recently the pair respected resistance, labelled "Potential Price Resistance". The RSI is also in oversold territory. UK construction data came out quite positive but price action failed to show buying pressure. The lack of buyers may add selling pressure. Further Brexit news may start colouring a more negative picture for the Pound (GBP).
Splitting the trade into two, I have two take profits (TP) at the two lower gold support lines. TP1: 1.2545 and TP2: 1.24. Giving around 9:1 and 6:1 reward to risk ratios. The stop loss (SL) is just above the recent price resistance. Options to move the stop loss to neutral (entry price) exist if the price moves in a bearish direction. I will move the SL to neutral if the price reaches 1.277, near the gold support at fib 23.6%.
Splitting the trade into two, I have two take profits (TP) at the two lower gold support lines. TP1: 1.2545 and TP2: 1.24. Giving around 9:1 and 6:1 reward to risk ratios. The stop loss (SL) is just above the recent price resistance. Options to move the stop loss to neutral (entry price) exist if the price moves in a bearish direction. I will move the SL to neutral if the price reaches 1.277, near the gold support at fib 23.6%.
Note
To be more explicit, I will open a short trade at or just below the resistance line labelled "Potential Price Resistance". Targets are mentioned above.Note
A correction, RSI is in overbought territory, not oversold as stated above.Trade closed: stop reached
The price moved up above the resistance line and the stop loss was triggered.
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