GBP/USD – the pair for the global economy?Two main fundamental factors depressed the GBPUSD for the past couple of years—Brexit, and now recently, the Coronavirus.
The trade is relatively simple – once there is a vaccine for the Coronavirus, alongside certainty on Brexit talks, a good case can be made for the pair to reach its Pre Brexit/Pre Coronavirus levels around 1.45
Pound needs to meet two catalysts to hit 1.45
Let’s go over the technical first. A Fibonacci drawn from 1.34 to 1.15, from the 2019 high to the 2020 low, can see the level of 1.45, hitting perfectly with the 161.8% retracement level, which was the level before the Brexit referendum results were announced in 2016. Alongside predicted further weakness in the US dollar, as vaccine hopes rise, the pound may rally on relatively less stimulus to its US counterpart.
We can also see some consolidation zones and congestion around 1.32 and 1.38, where bulls and bears fight it for a higher or lower move. However, movements to the upsides past these zones paired with positive fundamental news may see price levels freely hit strong Fib levels. A robust full recovery, with pre-Coronavirus level economic activity alongside a positive post Brexit environment, and we can see levels hit 1.50 – 1.55.
Brexit – time is running out, risky for the Pound
It has almost been five years since the Brexit referendum took place—a quick refresher on why Brexit occurred. There were talks amongst the public that they were getting the short end of the stick regarding the European Union and that the majority of the citizens in the UK wanted to leave. The Prime Minister at the time, David Cameron, disagreed with the notion that the UK public wanted to leave. Therefore, he initiated a referendum to show that the UK did not want to leave the European Union. It turns out he was wrong, and they did want to leave. David Cameron retired soon after.
Five years later, and we’re edging closer to a deal. Brussels and the UK have started in-depth negotiations again after the Coronavirus ravaged the world. A “deadline” has been set for 31st December, where Britain will “leave” the EU regardless of whether a deal has been met. However, “deadline” is in quotations as both have agreed to extend deadlines that have passed many times before.
An EU official has stated that “its getting terribly late and may be too late already” and that “they haven’t quite reached where they had hoped to be.” If a “no deal” Brexit occurs on 31st December, shock waves will be sent not only in the financial markets but also supply chains all across Europe and the UK. There is currently free trade and free transport out of the UK and into Europe and vice versa. However, a no-deal Brexit would mean that on the 31st December, the EU will treat the UK like any other country.
A no-deal Brexit should see the pound drop to a similar magnitude of that in 2016. However, if the optimistic scenario occurs and a vaccine comes alongside positive Brexit negotiations, we should see the pound rally against the US Dollar.
Gbpusd-trading
GBPUSD | WILL GO UP FOR 50+ PIPS OR MORE PLEASE SUPPORT THE IDEA BY SMASHING LIKE AND GIVING A COMMENT <3
Hello Forex Trading Lions! PLEASE ENJOY THE FREE IDEA!
Today we are having a look at GBPUSD currently fundamentals are strong, also hedgefunds increasing their buy orders.
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GBPUSD IDEADo your own analysis ...
Dont Forget Moving StopLoss At Breakeven
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. You must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
Trading plan for EURUSD, GBPUSD, USDJPY for 12/06/2020EURUSD*
The technical cross-section**:
Trend: 1
A strength of trend: 1
Overbought/oversold : none
The priority area of transactions : buying
Selling in the area of 1,1360 with a stop above 1,1410 and a profit in area 1,1260.
Selling in the area of 1,1450 with a stop above 1,1510 and a profit in area 1,1350.
Buying in the area of 1,1280 with a stop below 1,1240 and a profit in the area of 1,1350.
Buying in the area of 1,1180 with a stop below 1,1140 and a profit in the area of 1,1350.
GBPUSD
The technical cross-section:
Trend : 0
A strength of trend: 0
Overbought/oversold : none
The priority area of transactions: selling
Buying in the area of 1,2500 with a stop above 1,2460 and a profit in area 1,2600.
Selling in the area of 1,2650 with a stop above 1,2690 and a profit in area 1,2500.
Selling in the area of 1,2750 with a stop above 1,2790 and a profit in area 1,2620.
USDJPY
The technical cross-section:
Trend: 0
A strength of trend: -1
Overbought/oversold: none
The priority area of transactions: selling
Selling in the area of 107,90 with a stop above 108,20 and a profit in area 107,00.
Selling in the area of 108,50 with a stop above 108,90 and a profit in area 108,00.
Buying in the area of 106,80 with a stop below 106,40 and a profit in the area of 108,00.
Buying in the area of 106,00 with a stop below 105,60 and a profit in the area of 107,00.
* all transactions are intraday, that is, it must be closed at the end of the day. The error in the parameters of transactions is +/- 5 points; in the case of fundamental force majeure, the recommendations may be less relevant;
** the trend parameter accepts values “+1” - an uptrend, “-1” - a downtrend, “0” - no trend. Determined in terms of the author's analysis of a set of signals from technical indicators from different time frames;
the trend strength parameter - accepts values from “-4” to “+4” and shows how strong this trend is. It is determined based on the author's analysis of a set of signals from technical indicators from different time frames;
overbought/oversold is defined in terms of the analysis of the RSI (8) indicator on a daily time frame. The boundaries of the zones are accordingly 70 and 30;
the priority area of transactions depends first of all on trend and its strength but is also taken into account our value judgments of the situation on the market.
Wish you successful trading solutions and transactions!
GBPUSD | WANTS YOU TO BUY NOW PLEASE SUPPORT THE IDEA BY SMASHING LIKE AND GIVING A COMMENT!
Hello Forex Trading Lions,
Today we are having a look at GBPUSD, it seems like a good opportunity to long this trade, 1-2-3 pattern trend line while also having a nice curve on moving averages.
Also it broke important level of consolidation and currently having a pullback, very likely the uptrend will continue.
GBPUSD: Complete Indecision
this trading week has started at a slow pace.
gbpusd has reached a key structure level last week,
and these last two days the market is just coiling in sideways.
market participants are waiting for some trigger.
from current prices, the best strategy for you to follow is to wait for a breakout of a decision range on 1H.
in case of a bearish breakout, I will sell the pair with the initial target 1.205
(and by the way, my bias is bearish here)
in case of a bullish breakout, I will buy aiming at 1.27
no matter where the market is going next we can trade it following this strategy!
good luck!
GBPUSD at short-term supportGBPUSD has fallen from the highs amid Brexit tensions. With no recent developments Cable appears to have put a bottom in place at least in the short term. The trend remains bullish and stochastic as displayed a bullish cross in an oversold market. TPs should be conservative around 1.23.
Overview of GBPUSD - VideoA quick overview of my current position on GBPUSD.
Looking at GBP on the whole, I think there is the possibility for more upside and continued momentum.
(Here is the code for the basket I use GBPAUD*GBPCAD*GBPCHF*GBPJPY*GBPNZD*GBPUSD*GBPEUR)
GBPUSD still looks good to me but it looks like we are about to see a consolidation/correction in the very short term.
Watching for now, but will be looking to buy on dips.
GBPUSD-Weekly Market Analysis-Jan19,Wk4On daily chart, GBPUSD has not turned bullish but the 4-hourly chart and 1-hourly chart says otherwise.
There is 2 ABCD pattern within the chart, 1 speaks for the 4-hourly and another the 1-hourly chart.
The cyan box demarks the buy zone on the 1-hourly chart. I will be waiting for buying opportunity, which will set in after I have spotted the confirmation signal.
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