British Pound / U.S. DollarUpdated GBPUSD Trade Idea
GU is currently in an uptrend but chugging along. 1.3740 key resistance zone has held strongly since 21st Jan. In today's trading session, I will be monitoring the price action of GU closely, due to the higher lows sequence forming with a bottom trendline (squeezing model) with 1.3740 as the mean. There are two setups that I am looking at
1. If there's another clear rejection of 1.3740 resistance zone, it could validate our short setup with trailing stop. To have a further target such as 1.3620 & 1.3540 I'll need to see the bottom trendline clearly breached. If the bottom trendline is respected, we could easily some bounce back towards 1.3740 resistance zone. (Bearish)
2. An upwards breakout of 1.3740 resistance could send GU towards 1.38 zone. Be aware of potential probe setup (Refer to 27th Jan), avoid chasing the breakout, preferably buy the re-test if the breakout is strong. Allow the structure to form. (Bullish)
However, do not forget the overall trend on the higher timeframe remains bullish.
Trade safe.
Do follow my profile for daily fx forecast & educational content.
1. If there's another clear rejection of 1.3740 resistance zone, it could validate our short setup with trailing stop. To have a further target such as 1.3620 & 1.3540 I'll need to see the bottom trendline clearly breached. If the bottom trendline is respected, we could easily some bounce back towards 1.3740 resistance zone. (Bearish)
2. An upwards breakout of 1.3740 resistance could send GU towards 1.38 zone. Be aware of potential probe setup (Refer to 27th Jan), avoid chasing the breakout, preferably buy the re-test if the breakout is strong. Allow the structure to form. (Bullish)
However, do not forget the overall trend on the higher timeframe remains bullish.
Trade safe.
Do follow my profile for daily fx forecast & educational content.
Note
Previous analysis
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.