GBPUSD POST FOMC - RISING WEDGE
Updated
This pair should face heavy resistance between 1.27691-1.27795, with a few key fib levels clustered around this area. This area has been a reliable support/resistance zone in the past.
The current rise is simply a pullback from the drop post-rate hike and this pair seems to be trading in a rising wedge structure. I am anticipating a break down of this structure near the top, for a continuation of the overall bearish trend. This should be catalysed during the London session, possibly with help from a dovish tone from the BoE during the UK’s interest rate decision resulting in further GBP weakness.
Look for entries between 1.2770 and 1.2780 on a lower timeframe.
SL @ 1.28185
TARGET 1 @ 1.27300
TARGET 2 @ 1.26706
TARGET 3 @ 1.26368
R/R ratio - approx 3.04 (depending on your entry)
Good luck
The current rise is simply a pullback from the drop post-rate hike and this pair seems to be trading in a rising wedge structure. I am anticipating a break down of this structure near the top, for a continuation of the overall bearish trend. This should be catalysed during the London session, possibly with help from a dovish tone from the BoE during the UK’s interest rate decision resulting in further GBP weakness.
Look for entries between 1.2770 and 1.2780 on a lower timeframe.
SL @ 1.28185
TARGET 1 @ 1.27300
TARGET 2 @ 1.26706
TARGET 3 @ 1.26368
R/R ratio - approx 3.04 (depending on your entry)
Good luck
Note
GU looking quite dire, could break down a lot sooner than expected
Note
GU struggling to move higher, starting to look like a bearish pennant rather than a rising wedge..Note
Looking more like a pennant, updated entry is
SL @ 1.27708
SELL LIMIT @ 1.27420
TP1 @ @ 1.26617
TP 2 @ 1.26368
Waiting for candle to close below the lower trendline.
Note
This should be it.. order hasn't activated yet
Trade active
Note
Looks like the break down is real this time.. coming along nicely
Note
Facing a hard support level here, but once it gets through 1.272-1.273 it's a race to the bottom
Note
So far so good, bad UK retail sales helped limit upside risk, however gbpusd is currently facing exhaustion and needs to consolidate before more downside. Alternatively, a bearish impulse from the BoE rate decision should do the trick.
Note
Trade going well, TP1 is in sight. Next major support at 1.26920, may need to form a consolidation structure to break through
Trade closed: stop reached
Well that was a bit of a surprise. Risk management is key, especially when trading during high impact events such as interest rate hikes. SL was not used/hit as position was hedged before the BoE announcement. Trade cancelled for further analysis after the dust settles
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.