Fundamentals:- After the EU backed the Brexit deal formulated by Teresa May we could see an up swing in some of the GBP currencies. Although some traders believe this is already priced in coupled with recent economic data I can't help feeling that the GBP is slightly undervalued.
Technicals:- As you can see we have used the daily chart to analysis this currency pair. The downward trend was broken back in September with a retest of 149.60 resistance on multiple occasions since then. A fall back to the short trend line shows support indicating that the downturn could come to an end.
The trade:- We are going to use the previous daily upswing to use a break above this candle for the entry point and a stop loss below the previous swing low on the 25th October. Take profit will be the start of the move down way back in Febuary.
Long Entry :- 146.30
stop loss :- 142.70
take profit :- 156.00
Technicals:- As you can see we have used the daily chart to analysis this currency pair. The downward trend was broken back in September with a retest of 149.60 resistance on multiple occasions since then. A fall back to the short trend line shows support indicating that the downturn could come to an end.
The trade:- We are going to use the previous daily upswing to use a break above this candle for the entry point and a stop loss below the previous swing low on the 25th October. Take profit will be the start of the move down way back in Febuary.
Long Entry :- 146.30
stop loss :- 142.70
take profit :- 156.00