GBPUSD: Upside Capped to 1.2900?
Last Sunday, I mentioned that price has chance of retracing towards 1.3000 area when GBPUSD was trading at 1.2735 and advised traders to look for long entries. The analysis was quite successful and price went towards the 1.2950 area and managed to give us more than 230 pips of profit.
However, the recent upside momentum might be attributed to the Dollar's weakness and not necessarily to Pound's strength.
Brexit issues and Political troubles of May's cabinet continues to weigh down on the Pound and hence, Long positions should be taken with caution.
From the chart, we can also see that price is back in the Channel once again. So, will it visit the upper end of the channel?
Trading Plan for the upcoming week.
On Monday, I would be watching the price action closely to see if price manages to break the 1.2900 level. In case, it doesn't break this level, I would be looking for short entries around 1.2880-1.2890 with TP towards 1.2730 area. Stops would be placed above the recent Hight at 1.2950 if I take this trade.
However, the recent upside momentum might be attributed to the Dollar's weakness and not necessarily to Pound's strength.
Brexit issues and Political troubles of May's cabinet continues to weigh down on the Pound and hence, Long positions should be taken with caution.
From the chart, we can also see that price is back in the Channel once again. So, will it visit the upper end of the channel?
Trading Plan for the upcoming week.
On Monday, I would be watching the price action closely to see if price manages to break the 1.2900 level. In case, it doesn't break this level, I would be looking for short entries around 1.2880-1.2890 with TP towards 1.2730 area. Stops would be placed above the recent Hight at 1.2950 if I take this trade.
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