GBPUSD SELL UPDATE!!!1:1 has been achieved
Now let's aim for 1:2
Secure half of the profits and leave the rest to run to full TP
USDGBP trade ideas
GBPUSD Bearish on HTF in 2025Price Rejected 2 Times from Order Block, 6 Month CRT, High Taken, Target is Low, In Simple Words, We are Bearish On HTF.
Euro slips, Pound outperforms | FX ResearchAs we come into the North American open, the US dollar remains in the driver's seat and is up pretty much across the board. Dollar demand is also found company in US equity futures, pointing to a lower open. But overall, with stocks trading just off record highs, the setbacks aren't anything to write home about.
Euro weakness can be attributed to the lowest German IFO reading in over four and a half years. As for the exception mentioned, we have seen some relative strength in the pound on the back of solid UK employment data that also continues to show wage growth coming in above forecast. This has helped confirm expectations for a BoE rate hold this week.
Looking ahead, we get Canada inflation and housing data, US retail sales, industrial production, business inventories, NAHB housing, and the New Zealand GDT auction. The Canadian dollar is trading at its own multi-month lows against the US dollar on the combination of a souring economic outlook and disruption within the government involving a number of key resignations.
For the exact date and time of these major economic events, import the BlackBull Markets Economic Calendar to receive alerts directly in your email inbox.
Exclusive FX research from LMAX Group Market Strategist, Joel Kruger
GBPUSDThis week's forecast is for a continuation of the decline, with the target in the zone between 1.2520 and 1.2472, coinciding with a key level at 1.2491.
GBPUSD Potential move todayHey guys, I see this could play out after news today, It's only Monday. Trade smart, Trade safe. Cheers. FX:GBPUSD
GBPUSD Short Trade SetupGbp/Usd getting ready for further declines after a breakout from corrective structure. We'll be entering shorts from here.
Entry: 1.2632
Targets: 1.2480 & 1.2325
Stops: 1.2792
Risk to reward 1:2
GBPUSD SHORT Market structure bearish on HTFs 30
Entry at Daily and Weekly AOi
Weekly Rejection at AOi
Daily Rejection at AOi
Previous Structure point Daily
Around Psychological Level 1.26000
H4 Candlestick rejection
Rejection from Previous structure
Levels 9.57
Entry 105%
GBPUSD going temporarily shortThe GBPUSD pair is moving downwards after several attempts of breaking resistance zone at 1.2060 and the seller might benefit from the down move as a result of the CPI data
GBP/USD Analysis 1H TimeframeWe are observing a breakout below the purple support level, indicating potential bearish momentum. However, my idea focuses on the next key support level in the green zone, which holds significant importance.
This support level has been untested for a long time and has historically shown high trading volume.
I anticipate that when the price retraces to this green support level, buyers could step in, pushing the price higher.
GBP/USD Sells from 1.2700 back downThis week, I expect GBP/USD to continue its downtrend, following a clear change in character and a break of structure on the higher timeframe, signaling bearish momentum. My primary plan is to wait for a retest of the 2-hour supply zone, located above the Asia high. Once the Asia high is taken, I’ll look for confluences to execute potential sell trades.
If the 2-hour supply zone fails to hold, I’ll shift my focus to the 10-hour supply zone, which represents a significant structural point. Should price distribute in this area, I’ll look for major sells to align with the prevailing bearish trend.
Confluences for GBP/USD Sells:
- Liquidity Below: There’s substantial liquidity to the downside waiting to be taken.
- Bearish Momentum: The pair has been bearish over the past two weeks.
- Break of Structure: Price has broken key levels to the downside on the higher timeframe.
- DXY Correlation: The dollar index (DXY) is aligning with this bearish setup.
- Key Supply Zone: A well-defined supply zone caused the initial downside move.
Note: As price approaches the 8-hour demand zone, I’ll also consider any long opportunities to take price up to the supply zone for a countertrend move, rather than waiting for bearish setups exclusively.
GBP/USD Breaks Rising Wedge Support – Targets 1.2565 & 1.2530GBP/USD has been in a downtrend for some time. Recently, it formed a rising wedge pattern, which is a bearish continuation signal. In this pattern, the price had been making Higher High and Higher Low indicating a tightening range.
Now, the pair has already broken the support of the wedge, confirming the bearish breakout. This suggests that the downtrend is likely to continue as sellers take control.
Current Price: 1.2620
Target 1: 1.2565
Target 2: 1.2530
If the price moves as expected, we could see it reaching these targets soon.
GBPUSD looking bearish for long term GBPUSD looking bearish for long term on Weekly TF might reversal came from 1.24000 or 1.23000.
Daily Analysis of GBP to USD – Issue 169The analyst predicts that the rate of GBP/USD will decrease in the next 24 hours. This prediction is based on a quantitative analysis of recent price trends
GBP BEARISH - heading to new lows - short scalp on retracementSmall trade amidst the larger slow wind down to 1.23 as per last post.
Technicals - broken uptrend
Fundamentals - weak UK economy; buoyant US economy divergence long term
SHORT (on retracement)
Entry 1.2740
SL 1.2810
TP 1.2610
Good luck!
GBPUSD Will Go Up! Long!
Take a look at our analysis for GBPUSD.
Time Frame: 4h
Current Trend: Bullish
Sentiment: Oversold (based on 7-period RSI)
Forecast: Bullish
The market is trading around a solid horizontal structure 1.275.
The above observations make me that the market will inevitably achieve 1.282 level.
P.S
The term oversold refers to a condition where an asset has traded lower in price and has the potential for a price bounce.
Overbought refers to market scenarios where the instrument is traded considerably higher than its fair value. Overvaluation is caused by market sentiments when there is positive news.
Like and subscribe and comment my ideas if you enjoy them!
GBP turning bearish after surge to 1.28 - heading down to 1.23 GBP turning bearish after surge to 1.28 - heading down to 1.23 is support zone of 1.25-1.2610 breached.
Entry 1.2760
SL 1.2810
TP1 1.25
TP2 1.23
Good luck all!
Sell GBP/USD Channel BreakoutThe GBP/USD pair on the M30 timeframe presents a potential selling opportunity due to a recent downward breakout from a well-defined Channel pattern. This suggests a shift in momentum towards the downside in the coming Hours.
Key Points:
Sell Entry: Consider entering a short position around close to the breakout level. This offers an entry point near the perceived shift in momentum.
Target Levels:
1st Support – 1.2668
2nd Support – 1.2620
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How Can You Use a Break and Retest Strategy in Trading?How Can You Use a Break and Retest Strategy in Trading?
Trading strategies help traders navigate the financial markets with greater confidence. One such approach is the break and retest strategy, which focuses on key support and resistance levels. This article explores the break and retest strategy in detail, providing insights and practical examples to help traders apply it in their trading activities.
Understanding the Break and Retest Strategy
The break and retest strategy is popular among traders who aim to capitalise on clear market movements. At its core, this strategy revolves around identifying key support and resistance levels on a price chart.
Here’s how it works: When the price breaks through a support or resistance level, it signals a potential shift in market sentiment. For example, if a stock breaks above a resistance level, it suggests increasing buying interest. Traders then watch for the price to return to this newly broken level—known as a retest in trading. During the retest, the former resistance now acts as support, providing a potentially more attractive entry point for traders looking to join the trend.
This strategy aligns well with trending markets, where prices move consistently in one direction. It allows traders to take advantage of momentum while managing their entries potentially more effectively.
The Mechanics of Break and Retest Trading
Implementing the break and retest strategy involves a clear sequence of steps that traders follow to identify and act on potential market moves. Here’s a breakdown of how this strategy typically operates:
1. Identifying Key Levels
Traders begin by pinpointing significant support and resistance levels on their charts. Accurate identification is crucial, as these levels form the foundation of the strategy.
2. Monitoring for a Breakout
Once the key levels are established, traders watch for the price to break through one of these barriers, in line with a broader trend. A breakout occurs when the price moves decisively above resistance or below support, often accompanied by increased trading volume. This surge in volume indicates stronger market interest and can validate the breakout’s legitimacy.
3. Waiting for the Retest
After the breakout, the price typically retraces to test the broken level. For instance, if the price breaks above a resistance level, it may pull back to that same level, which now acts as support. This retest phase is critical as it offers a second confirmation of the breakout’s strength.
4. Confirming the Retest
During the retest, traders look for confirmation signals to ensure the breakout is genuine. These signals can include specific candlestick patterns, such as pin bars or engulfing candles, and continued high trading volume. Successful confirmation suggests that the new support or resistance level will hold, increasing the likelihood of a sustained trend.
5. Entering the Trade
With confirmation in place, traders often enter the market, aiming to ride the new trend. They may set stop-loss orders slightly below the new support (in the case of a breakout to the upside) or the new resistance (in case of a breakout to the downside) to manage potential risks.
6. Managing the Trade
Effective trade management involves setting target levels based on previous price action and adjusting stop-loss orders as the trade progresses. This helps to lock in potential returns and potentially protect against unexpected market reversals.
Break and Retest Example Strategy
Consider this EURUSD 15-minute chart, which displays a clear bearish trend. This trend is highlighted by the 50-period Exponential Moving Average (EMA) sloping downward, with the price generally staying below it. Recently, the price broke below a key support level on higher-than-average volume, signalling a potential opportunity for traders to apply the break and retest strategy.
In this scenario, there are two support levels to monitor. The first is a more significant support level. Trading at this level can allow traders to enter the market quickly, though it comes with a less favourable risk-reward ratio.
The second support level is found within the recent brief retracement. This level offers a better risk-reward ratio, but there's a chance the price may not retrace deeply enough, potentially causing traders to miss the trade.
The entry point is identified by a candle with a wick longer than its body (a pin-bar on the 30m chart), indicating rejection of higher prices as the market retests the second broken support level. Once this candle closes, traders can enter a market order.
Stop losses would typically be placed either above the last major swing high or above the 50-period EMA, depending on individual risk tolerance. Take-profit targets could be set at a 1:3 risk-reward ratio or at the next significant support level, where a price reversal may be anticipated.
Improving the Break and Retest Strategy
Enhancing the break and retest strategy involves integrating additional tools and techniques to refine trade decisions. Here are several methods to consider:
1. Incorporating Additional Indicators
Using break and retest indicators like the Relative Strength Index (RSI) or the Moving Average Convergence Divergence (MACD) can provide valuable insights. For instance, an RSI crossing below 70 during a bearish breakout may indicate weakening momentum, supporting the retest. Similarly, the MACD crossing above its signal line or the MACD histogram rising above 0 can confirm the uptrend’s strength, aiding in more precise entry points.
Explore these indicators and more than 1,200+ trading tools in FXOpen’s free TickTrader trading platform.
2. Multi-Timeframe Analysis
Examining charts across different timeframes helps in gaining a broader market perspective. A breakout observed on a 4-hour chart gains additional confirmation when a strong trend is also visible on a daily chart. This alignment across timeframes increases the reliability of the trade setup.
3. Utilising Fibonacci Retracements
After a breakout, prices often retrace deeper into the previous high-low range—not always to the most extreme point. Applying Fibonacci retracements to the high/low of the breakout (high in a bearish breakout and low in a bullish scenario) and the new low or high can help identify optimal retest points, particularly at the 38.2%, 50%, and 61.8% levels. These levels typically offer better risk-reward ratios compared to the extreme points.
4. Incorporating Fundamental Analysis
Supporting technical breakouts with fundamental factors, such as economic reports or news events, strengthens the strategy. For example, a breakout aligned with positive economic data may have a higher probability of sustaining the new trend, providing traders with greater confidence in their decisions.
Advantages of the Break and Retest Strategy
The break and retest strategy offers several advantages that can enhance a trader’s approach to the markets:
- Increased Confidence through Confirmation: The retest serves as an additional validation of the breakout, boosting trader confidence in their entry decision and reducing hesitation.
- Better Risk Management: Setting stop-loss orders based on the retest level provides a clear risk boundary. This structured approach aids in potentially managing losses.
- Alignment with Market Trends: This strategy naturally aligns trades with the prevailing market trend. By trading in the direction of the breakout, traders can take advantage of sustained movements.
- Versatility Across Markets: The breakout and retest strategy can be applied to various financial instruments, including forex, stocks, and commodities. Its adaptability makes it a valuable tool in diverse trading environments.
- Scalability and Flexibility: This strategy can be adapted to different timeframes and trading styles, making it suitable for both short-term and long-term traders seeking to implement a consistent approach.
Potential Challenges and Considerations
While the break and retest strategy can be a powerful tool, traders may face several challenges when implementing it:
- False Breakouts: Not every breakout leads to a sustained trend. Sometimes, the price moves beyond a support or resistance level only to reverse shortly after. Recognising these false signals is crucial to avoid entering trades that may quickly turn against expectations.
- Market Conditions: According to theory, this strategy performs best in trending markets. In sideways or highly volatile environments, breakouts can be less reliable, making it harder to distinguish genuine opportunities from random price movements.
- Timing the Retest: Accurately determining when the price will retest the broken level can be challenging. Entering too early may expose traders to unnecessary risk, while waiting too long might result in missed opportunities if the retest doesn't occur as anticipated.
- Reliance on Confirmation Signals: While additional indicators like RSI or MACD can enhance the strategy, over-reliance on these tools can complicate decision-making. Traders need to balance multiple signals without becoming overwhelmed or confused.
- Emotional Discipline: Maintaining discipline during retests is essential. Traders might feel pressured to act quickly if the market moves unexpectedly, leading to impulsive decisions that deviate from their trading plan.
The Bottom Line
The break and retest strategy offers a structured approach to navigating market movements, combining precise entry points with effective risk management. By understanding and applying this method, traders can potentially enhance their trading decisions and align with prevailing trends. To put this strategy into practice across more than 700 markets, consider opening an FXOpen account and gain access to four advanced trading platforms, low trading costs, and rapid execution speeds.
FAQ
What Is a Retest in Trading?
A retest occurs when the price returns to a broken support or resistance level after an initial breakout. It serves to confirm the strength of the breakout, helping traders decide whether the new trend will continue or if the breakout was false.
What Is the Break and Retest Strategy?
The break and retest strategy involves identifying a breakout of a key support or resistance level and then waiting for the price to return to that level. Traders use this retest as a confirmation to enter the market, aiming to follow the new trend with reduced risk.
What Is the Win Rate of the Break and Retest Strategy?
The win rate of the break and retest strategy varies depending on market conditions and how the strategy is applied. Consistent application and effective risk management are crucial for achieving better results.
How Many Times Should I Backtest My Strategy?
Backtesting should be done extensively across different market conditions and timeframes. According to theory, traders need to test a strategy on at least 100 trades to ensure its reliability and to understand how it performs in various scenarios.
Does the Market Always Retest?
No, the market does not always retest broken levels. While retests are common, they are not guaranteed. Traders should use additional confirmation signals and be prepared for both possibilities when applying the break and retest strategy.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
GBPUSD upside target 1.2900On the 4-hour chart, GBPUSD formed a head and shoulders bottom pattern, and short-term bulls have the upper hand. At present, we can pay attention to the support near 1.270. If it falls back and does not break, it is expected to continue to rise. Pay attention to the resistance near 1.280 above, and the breakthrough will go to the resistance near 1.290.
GBPUSD GOING TO LONG,Hello traders here is GBPUSD analysis lets check and share your ideas about it .
GBPUSD looking bullish from this area according my personal analysis lets see my chart and comment your thoughts below.
Follow me for regular updates about the market support me with your like and comments boost my ideas
GBPUSD LONGAfter a major sell-off with no volume, one might anticipate a fantastic buying opportunity. It's like finding a quiet store during a mega sale – everything must go, and you've got the aisles to yourself!
GBP/USD Ascending channel short term long term Hi traders, we are taking look into GBP/USD as a short term long position currently there has been an ascending channel formulated and we can see that the RSI is pointing into a nice uptrend -
Entry : 1.27600
Target : 1.27960
Stop loss : 1.27454
2.20:1 RR (Risk to Reward Ratio)
As always my friends happy trading!
P.S. If you have questions or inquiries about one of my existing set-ups or personal questions / 1 on 1 sessions consider joining my channel so you can follow up with me in private!
