GBPUSD turning around … the week of 12 Aug, 2024
Updated
Let us start with the USDX (Dollar index). Check out both the H4 and Daily chart. Strongly bearish is what I conclude.
This opens up several pairs that can provide good trades next week. Let us look at a bullish scenario for GBPUSD.
On the daily, we can see that until 3 days ago, this pair was bearish but is showing bullish signs now. The H4 chart, shows that a base has formed in the 1.267 region and price has crossed over above the 20ema. Price action is inline with a bullish move and corelates nicely with a bearish USD.
I will be monitoring this pair (and others) for further weak USD evidence and then take a trade. A retracement to the 20ema or the base (double bottom) area would provide good locations for stop placement. However, if a move to the downside continues and that base is convincingly broken, that would negate my analysis.
This is not a trade recommendation. You should be aware that trading carries a high level of risk, so only trade with money you can afford to lose. Please use sound money and risk management, trading without a stop or moving the stop away from price is a recipe for disaster.
If you like my idea, please give a “boost” and follow me to get even more.
Please comment and share your thoughts too!!
It’s not whether you are right or wrong, but how much money you make when you are right and how much you lose when you are wrong – George Soros
This opens up several pairs that can provide good trades next week. Let us look at a bullish scenario for GBPUSD.
On the daily, we can see that until 3 days ago, this pair was bearish but is showing bullish signs now. The H4 chart, shows that a base has formed in the 1.267 region and price has crossed over above the 20ema. Price action is inline with a bullish move and corelates nicely with a bearish USD.
I will be monitoring this pair (and others) for further weak USD evidence and then take a trade. A retracement to the 20ema or the base (double bottom) area would provide good locations for stop placement. However, if a move to the downside continues and that base is convincingly broken, that would negate my analysis.
This is not a trade recommendation. You should be aware that trading carries a high level of risk, so only trade with money you can afford to lose. Please use sound money and risk management, trading without a stop or moving the stop away from price is a recipe for disaster.
If you like my idea, please give a “boost” and follow me to get even more.
Please comment and share your thoughts too!!
It’s not whether you are right or wrong, but how much money you make when you are right and how much you lose when you are wrong – George Soros
Trade closed: target reached
This trade worked very well. Closed at the end of the week.
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.