GBPUSD - 1W Analysis

The recent big drop caught me by surprise. My bull bias was weakened. Decided to review 1W chart to regroup. Honestly, I my bias is still weak. Based on 1W, I am not bearish (yet) and more confirmation is needed to strengthen bullish action.

What I see (all observations are LONG TERM):

Big down move previous week, with potentially more downside pressure this week.
(I placed a losing trade using 4H/1H and tight SL in hopes of a bounce off of 1.5331 support.)

If 1.5170 support holds, I expect a break through 1.5331 resistance to 1.5930. If that breaks, next move would be to 1.6188.

If 1.5170 breaks, I expect range trading for an extended period of time. A break of 1.4566 would be needed for Long-Term Bear bias.

I don't trade on 1W charts. I only use them to help form a bias and identify substantial resistances/support lines.

Bottom line - my bias for GBPUSD:
- Short-term...depends on risk/reward and overall trade set ups. (SEE BELOW FOR SHORT-TERM SPECIFICS AT THIS TIME 9/2 GBPUSD trading at 1.5294)
- Above 1.5400 and trending up 4H, I will be a tentative Bull (w/ tight SL)
- Ultimately, I expect to RANGE TRADE. What needs to be determine is if 1.5170 is the bottom of the range.

As far as SHORT-TERM specific actions...
- Risk/Reward would prohibit any Long entry at this time.
- Potential Short set up with a pullback.
Consider Entry @ 1.5330 (or in the 1.5325-1.5345 range)
SL @ 1.5390 (60 pips)
TP1 @ 1.5200 (130 pips) {Possible early exit @ 1.5220 (110 pips)}
TP2@ 1.5185 (145)

JLJ002500

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.