A bullish bias on the Cable (i.e. GBP/USD)
Updated
Here I present my analysis on the Cable (GBP/USD), on which I have a strong bullish bias considering both of its technical and fundamentals.
On the technical side, the Cable is seen to be re-testing the upper band of the bullish flag it just broke, which happens to be a strong demand zone of the pair. Adding a confluence to this analysis, the stochastic RSI oscillator is also seen to be indicating an oversold signal as it went below the 30 line. We can wait for the bullish crossover of this indicator for confirmation.
As with the fundamental part of the analysis, we have a crucial event for the GBP which is the UK Parliament voting on the Withdrawal Agreement Bill, which would require UK to leave the European Union on January 31st. With Brexit uncertainty due to Britain's political instability finally seeming to disappear, this news is expected to be optimistic for the Conservatives. If we happen to see the Brexit deal being made, we expect to see a huge bullish move on the GBP/USD chart.
At an approximate of 300 pips move upwards, we can maintain a risk to reward of 1:2, if we manage to execute this setup on time.
It would be wise to properly manage your risk if you wish to execute this setup as this is a highly volatile pair. I would personally recommend to risk no more than 1-2% of your trading account balance on this trade and adjust your lot size accordingly.
Further opinions on this analysis are highly welcome.
Happy Trading!
On the technical side, the Cable is seen to be re-testing the upper band of the bullish flag it just broke, which happens to be a strong demand zone of the pair. Adding a confluence to this analysis, the stochastic RSI oscillator is also seen to be indicating an oversold signal as it went below the 30 line. We can wait for the bullish crossover of this indicator for confirmation.
As with the fundamental part of the analysis, we have a crucial event for the GBP which is the UK Parliament voting on the Withdrawal Agreement Bill, which would require UK to leave the European Union on January 31st. With Brexit uncertainty due to Britain's political instability finally seeming to disappear, this news is expected to be optimistic for the Conservatives. If we happen to see the Brexit deal being made, we expect to see a huge bullish move on the GBP/USD chart.
At an approximate of 300 pips move upwards, we can maintain a risk to reward of 1:2, if we manage to execute this setup on time.
It would be wise to properly manage your risk if you wish to execute this setup as this is a highly volatile pair. I would personally recommend to risk no more than 1-2% of your trading account balance on this trade and adjust your lot size accordingly.
Further opinions on this analysis are highly welcome.
Happy Trading!
Trade closed: target reached
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