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GBPUSD A Potential Long Opportunity Awaiting Slight Retracement!I am awaiting for this pair to retrace to around 1.30000 level where the weekly pivot is located as well as the daily 50 EMA and then i am planning to go LONG on this pair. Looking at the main chart, a long term daily trendline was violated which also happens to be the neckline of the inverse head and shoulders pattern that had formed. The price has already broken through the daily 50 EMA and now i am waiting it to retrace to 1.3000 before i make my entry and take this pair LONG. The possible risk to reward ratio on this one is around 1:3 or 1:4 but however as we go along the fundamental and technical factors must be taken into consideration to adjust the TP AND SL levels The inverse head and shoulders formed right the 61.8 fib retracement of the previous weekly swing (see the chart below) adding to further confluence that the pair is ready to go up! Adding to the further more confluence, the weekly chart attached below indicates the wedge has been broken and now is seems to be retesting the upper trendline Have a read to the related ideas as well, as the harmonic pattern has developed and the pattern is yet to be invalidated either. FUNDAMENTAL ANALYSIS Well with all the technical analysis done which points to this pair heading upwards, lets look at the fundamental parts. The GBP recently is heavily relient on the brexit news and the recent developments show the deal is likely to be wrapped up in october this year. should this happen then we can see the GBP appreciate against many pairs. However against the USD the gains might be limited as the USD has been doing well this year and the FED rate hike expectations could mean less gain for this pair. Thus taking this all into consideration, the SL AND TP will be adjusted accordingly. However other GBP pairs are likely to gain more value such as the EURGBP, GBPNZD AND GBPJPY OR GBPCHF But for now this pair seems to show a lot of confluence to the upside and i would probably enter the trade once the price retraces to around 1.3000. stay tuned for any updates and signals. thank you
Long
by FX618Analysis