GBPUSD Trade Idea

In yesterday's analysis, I expected GU to having bearish continuation towards the 1.3550 key support zone but pay attention to the upper trendline at the same time. Price shot up yesterday large due the positive bank rate announcement (GBP) for over 130 pips. When a market performs something so explosive, It is crucial for you as a wise trader to stay calm and take a step back re-assessing the overall market condition. GU clearly violated the descending channel during the news announcement, never try to chase any price movement due to a catalyst (News) because it is irrational and could simply be manipulations. Be cautious that all the other major pairs (EU, AU, NU) were relatively bearish, pay attention to the correlation factor. In today's trading session, I will remain neutral bias, there are two setups that I am looking at

1. GU is currently forming an exhaustion pattern, still unsure it is a rising wedge pattern or simply a sign of continuation towards the upside. If price begins showing bearish pressure pushing below 1.3650 minor support zone, that could send GU back towards 1.3620 or yesterday's low. (Bearish)
2. If price finds more bullish momentum, wait for a clear break above 1.3708 before you consider any bullish continuation setup. (Bullish)

However, do not forget the overall trend on the higher timeframe remains bullish.

Trade safe.

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