Possible GBPUSD short opportunity
Updated
The 
GBPUSD has reached a support level around 1.3880. Which it has failed to break for over a month.
The upper bollinger band on the 4h is set to be breached. So, a small uptick followed by reduction is expected. The price may try to reach the next retracement fibonacci level close to 1.3770.
A set of bad data for GBP this morning including GDP data: Q and Y, BoT, output and production and goods trade balance.
The DXY on the other hand has been trading lower and expected to see a rise as all central banks hold talks of boosting (before coming up to surface).
If the USD does not perform well today this setup may not see light at the suggested entry. The key resistance break may trigger the GBP to go up further to test 1.3950 - albeit without any positive data.
GBPUSD has reached a support level around 1.3880. Which it has failed to break for over a month.The upper bollinger band on the 4h is set to be breached. So, a small uptick followed by reduction is expected. The price may try to reach the next retracement fibonacci level close to 1.3770.
A set of bad data for GBP this morning including GDP data: Q and Y, BoT, output and production and goods trade balance.
The DXY on the other hand has been trading lower and expected to see a rise as all central banks hold talks of boosting (before coming up to surface).
If the USD does not perform well today this setup may not see light at the suggested entry. The key resistance break may trigger the GBP to go up further to test 1.3950 - albeit without any positive data.
Note
At this stage, we could partially close to grab some profits at 1.3820.Today the USD is still climbing and might do so till NY open.
Tomorrow during London open session we see some positive UK employment data. This may give a slight upward correction and then continue the downward trend. There is a very slight reduction in US inflation rates during tomorrow's NY session.
Trade closed: target reached
The pound hit the bottom of the ascending wedge at around 1.3795. At this point the original idea is concluded.As expected it touched the bottom of the channel and is now moving upward as the US dollar seems to be in choppy waters.
Also we see positive UK news today which is also part of the cause for a retracement back up to the support level 1.3880
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