Gu
Potential Long GUThe market is in an ascending channel on the Daily time frame and has respected the lower support trend and rejected it and gained bullish momentum. Furthermore, on the daily time frame the 200EMA is below price which is a strong indication of bullish momentum and bias continuing. The larger area of resistance has proved itself as a key level of resistance on multile occassions on the market timeframes, a re-test or strong bullish momentum of this area alongside a crossing of the 50EMA above the 200EMA on the hourly woud serve as strong area of confluence and signal to enter a long position.
However, GBP is ranging due to uncertainty in Brexit negotiations and further pressure on the Test and Trace system compounded by weak inflation in the UK. Furthermore, there is a high volume of US economic statistics being released today. Namely; Retail sales at 1:30BST, Oil stocks at 3:30 (recently demand has been weak for oil) and FED interest rate decision at 7:00 BST. There is likely to be alot of volatility in this market today, so strong confrimation of bias should be made before entering a trade.
Potential Long Position GUArea of interest, price has tested the support trend line and rejected it on lower time frames. Price is at an area of confluence due to support and resistance trend lines and 200EMA indicating an area of value. Moreover, it is still bullish according to the 200EMA (Daily). However, fundamental analysis may indicate pound weakness due to Brexit negotiations reaching significant stumbling blocks and NHS workers striking. Furhermore, Dollar may be gaining stregth due to what seems to be a potential second spike emerging globally (France recording highest cases on record and India hitting 100,000 daily infections) indicative of liqudity shifting to the Dollar. Acting as a safe haven. Overall, strong confirmation must be shown before entering a long position on this trade as there is potential for a complete breakout of the current market structure which would offer selling opportunties. Either way, this area of confluence will likely offer good trading positions with a good R:R.
GBPUSD Potential 300+ Pip Move!Should be clear, a break in the 1H channel, also GU reacted well to the 4H upper channel line.
GBPUSD LONG (1H Fib Entry)Seems as though price is falling in the fibonacci (50-61.8 zone)
if price falls in this level and rejects in this zone instead of breaking though we are looking for nice solid bullish candles to close to confirm a long position around 1.32067 level.
Position: Long
Entry: 1.31067
SL: 1.31096 (50 pips)
TP1: 1.32104
TP2: 1.32547
TP3: 1.33017
TP4: 1.33713
