I closed my previous long trade at 1.32274 after assessing the historical price action, fundamental data, and technical indicators. Now, I’m shifting my focus to waiting for bearish signals before entering a short position.
Key Market Analysis
Fundamental Overview
U.S. Jobless Claims data came in stronger than expected (215K vs. 225K forecast), reinforcing USD strength, which could pressure GBP/USD lower.
Continuing Jobless Claims were higher (1885K vs. 1870K forecast), showing some softness, but overall, labor market data supports a stronger dollar.
Housing Starts dropped sharply (1.324M vs. 1.42M forecast), but Building Permits beat expectations (1.482M vs. 1.45M). This mixed housing data isn’t enough to offset USD’s strength from labor numbers.
Technical Overview
Immediate Resistance: 1.3245 – GBP/USD has struggled to break this level, indicating sellers are defending it.
Major Resistance: 1.3265 – If price breaks above 1.3245, this would be the next selling opportunity before further upside.
Immediate Support: 1.3225 – Holding this level is critical for bulls; failure could accelerate a move downward.
Major Support: 1.3205 – If price falls below 1.3225, this will be the next logical downside target.
My New Trade Plan: Waiting for Bearish Confirmation
Now that I’ve closed my long trade, I’m waiting for a short entry based on the following setup:
Best Bearish Entry: Between 1.32350–1.32450, close to resistance where sellers have been active.
Confirmation Needed: I’ll wait for price rejection near 1.3245, along with weak momentum indicators before entering a short position.
Next Steps
I’ll monitor price action closely to confirm a strong rejection at 1.3245 before entering a short trade.
If GBP/USD pushes above 1.3245 and holds, I’ll wait for a better short entry near 1.3265.
If price breaks below 1.3225, I’ll assess the strength of the downward momentum and potentially enter a trade with 1.3205 as my first target.
At this point, I’m patiently watching the market to ensure I have the strongest bearish setup before committing to a new position.
Key Market Analysis
Fundamental Overview
U.S. Jobless Claims data came in stronger than expected (215K vs. 225K forecast), reinforcing USD strength, which could pressure GBP/USD lower.
Continuing Jobless Claims were higher (1885K vs. 1870K forecast), showing some softness, but overall, labor market data supports a stronger dollar.
Housing Starts dropped sharply (1.324M vs. 1.42M forecast), but Building Permits beat expectations (1.482M vs. 1.45M). This mixed housing data isn’t enough to offset USD’s strength from labor numbers.
Technical Overview
Immediate Resistance: 1.3245 – GBP/USD has struggled to break this level, indicating sellers are defending it.
Major Resistance: 1.3265 – If price breaks above 1.3245, this would be the next selling opportunity before further upside.
Immediate Support: 1.3225 – Holding this level is critical for bulls; failure could accelerate a move downward.
Major Support: 1.3205 – If price falls below 1.3225, this will be the next logical downside target.
My New Trade Plan: Waiting for Bearish Confirmation
Now that I’ve closed my long trade, I’m waiting for a short entry based on the following setup:
Best Bearish Entry: Between 1.32350–1.32450, close to resistance where sellers have been active.
Confirmation Needed: I’ll wait for price rejection near 1.3245, along with weak momentum indicators before entering a short position.
Next Steps
I’ll monitor price action closely to confirm a strong rejection at 1.3245 before entering a short trade.
If GBP/USD pushes above 1.3245 and holds, I’ll wait for a better short entry near 1.3265.
If price breaks below 1.3225, I’ll assess the strength of the downward momentum and potentially enter a trade with 1.3205 as my first target.
At this point, I’m patiently watching the market to ensure I have the strongest bearish setup before committing to a new position.
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.