GBPUSD: Price approaching lower end of the channel,possible LONG
GBP/USD is trading in a narrow channel for almost this entire year. As you can see from the chart, the price bounces off the lower end of the channel(green line) and moves towards the upper end of the channel(red line).
So far, this has happened six times(indicated by the arrows).
So, we can definitely say that this is a widely respected channel.
ECB has recently hiked the interest rate which was already priced in and the sell-off was expected.
Right now, the price is approaching the lower end of the channel once again and we can expect a potential bounce from that area.
Pound is trading at historical lows and long-term traders will definitely find this price attractive. Although, as per my personal view, Pound will remain under pressure as long as the Brexit issue looms over Britain.
However, that doesn't mean we won't see a retracement of the 1500 pip fall that we have witnessed since mid-April.
TRADING PLAN FOR THE UPCOMING WEEK
Look for long-entries between 1.2890-1.2950 with TP1: 1.3140 and TP2:1.3260
So far, this has happened six times(indicated by the arrows).
So, we can definitely say that this is a widely respected channel.
ECB has recently hiked the interest rate which was already priced in and the sell-off was expected.
Right now, the price is approaching the lower end of the channel once again and we can expect a potential bounce from that area.
Pound is trading at historical lows and long-term traders will definitely find this price attractive. Although, as per my personal view, Pound will remain under pressure as long as the Brexit issue looms over Britain.
However, that doesn't mean we won't see a retracement of the 1500 pip fall that we have witnessed since mid-April.
TRADING PLAN FOR THE UPCOMING WEEK
Look for long-entries between 1.2890-1.2950 with TP1: 1.3140 and TP2:1.3260
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