GBP/USD Trade Update: Holding My Sell at 1.32480
I entered a sell trade at 1.32480, expecting a reversal based on key technical and fundamental setups. But with GBP/USD now sitting at 1.33814, I have to reassess market conditions while still staying true to my trading approach.
Fundamental Overview – Why I Still Favor Downside
This week’s economic events could create volatility, and I’m paying close attention to:
UK PMI (April 23): Expected declines in Manufacturing (44.1) and Services (51.0) suggest economic weakness, which could weigh on GBP.
US Durable Goods Orders (April 24): Mixed expectations—headline at +1.8%, but ex-defense and transportation are negative, meaning uncertainty in USD strength.
UK Retail Sales (April 25): Forecasted at -0.3%, signaling weaker consumer spending. This aligns with my sell bias, as slowing UK economic data could trigger renewed selling pressure.
If the UK data disappoints, GBP/USD could struggle to hold higher levels, reinforcing my trade.
Technical & Price Action Analysis
Resistance Holding at 1.342–1.345:
Strong resistance is forming here. If bulls fail to push past this zone, my sell trade could still play out.
Wick formations near this level suggest some rejection, but confirmation is needed.
Key Support Levels for a Potential Drop:
1.330–1.331 (Flipped Resistance, Now Support) – Watching if price retests this zone.
1.326–1.327 (Major Support) – If momentum shifts, price could revisit this area.
1.321 (Stronger Support) – If price weakens further, this becomes my downside target.
Momentum is slowing, but the bullish trend is still intact unless price rejects at 1.342–1.345.
Volume Profile & Institutional Behavior – Are Big Players Selling?
Signs of Institutional Unloading:
Buy-side orders appear strong, but price is not breaking higher with conviction. This could mean large traders are selling into the rally.
Watching for a delta imbalance where buyers dominate order flow, but price fails to rise. This is a classic distribution sign.
Why This Matters: If institutions are offloading positions near 1.342–1.345, we could see price stall and reverse. My focus is on whether this resistance holds or breaks. That will define whether my sell trade remains valid.
My Trade Management Plan – Staying Patient
As a daily trader, I wait for the daily candle close before making adjustments.
If price rejects 1.342–1.345, I’ll hold my position with targets back toward 1.330–1.327.
If price breaks above resistance and holds, I may need to reevaluate my stop-loss placement.
Final Thoughts – Trusting My Process
I’m still holding my sell at 1.32480, but I recognize that buyers are testing key resistance. If institutions are quietly distributing, we could see a shift back to the bearish side, but I’m waiting for confirmation at the daily close.
I’ll update once the daily candle closes. Let’s see if sellers step in.
I entered a sell trade at 1.32480, expecting a reversal based on key technical and fundamental setups. But with GBP/USD now sitting at 1.33814, I have to reassess market conditions while still staying true to my trading approach.
Fundamental Overview – Why I Still Favor Downside
This week’s economic events could create volatility, and I’m paying close attention to:
UK PMI (April 23): Expected declines in Manufacturing (44.1) and Services (51.0) suggest economic weakness, which could weigh on GBP.
US Durable Goods Orders (April 24): Mixed expectations—headline at +1.8%, but ex-defense and transportation are negative, meaning uncertainty in USD strength.
UK Retail Sales (April 25): Forecasted at -0.3%, signaling weaker consumer spending. This aligns with my sell bias, as slowing UK economic data could trigger renewed selling pressure.
If the UK data disappoints, GBP/USD could struggle to hold higher levels, reinforcing my trade.
Technical & Price Action Analysis
Resistance Holding at 1.342–1.345:
Strong resistance is forming here. If bulls fail to push past this zone, my sell trade could still play out.
Wick formations near this level suggest some rejection, but confirmation is needed.
Key Support Levels for a Potential Drop:
1.330–1.331 (Flipped Resistance, Now Support) – Watching if price retests this zone.
1.326–1.327 (Major Support) – If momentum shifts, price could revisit this area.
1.321 (Stronger Support) – If price weakens further, this becomes my downside target.
Momentum is slowing, but the bullish trend is still intact unless price rejects at 1.342–1.345.
Volume Profile & Institutional Behavior – Are Big Players Selling?
Signs of Institutional Unloading:
Buy-side orders appear strong, but price is not breaking higher with conviction. This could mean large traders are selling into the rally.
Watching for a delta imbalance where buyers dominate order flow, but price fails to rise. This is a classic distribution sign.
Why This Matters: If institutions are offloading positions near 1.342–1.345, we could see price stall and reverse. My focus is on whether this resistance holds or breaks. That will define whether my sell trade remains valid.
My Trade Management Plan – Staying Patient
As a daily trader, I wait for the daily candle close before making adjustments.
If price rejects 1.342–1.345, I’ll hold my position with targets back toward 1.330–1.327.
If price breaks above resistance and holds, I may need to reevaluate my stop-loss placement.
Final Thoughts – Trusting My Process
I’m still holding my sell at 1.32480, but I recognize that buyers are testing key resistance. If institutions are quietly distributing, we could see a shift back to the bearish side, but I’m waiting for confirmation at the daily close.
I’ll update once the daily candle closes. Let’s see if sellers step in.
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.
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.