Introduction:
Please read the full post before considering taking action.
GBP moves have been, over the past year or so, fueled more by Brexit news than any scheduled release of British economic reports. While GBP has been taking bearish pressure and USD has been overperforming for the past couple of weeks, we are taking a cautious approach here and will try to profit from a market correction.
Charts here are tricky. From the previous high in mid-March, we are witnessing the formation of a descending wedge, which could see its completion before the breakout upwards on the 1.28 level. A rounding bottom got formed recently, indicating a possible trend reversal, all the while the hidden bearish divergence in the RSI reads a "sell the rallies" situation. Should it continue upwards, we will probably see regular bearish divergences on the RSI all the way to the top, which usually occurs in these cases.
How to Proceed:
We opened a long at the 1.29 level, with scaling orders following the trendline all the way to the 1.28 price range.
Take Profit:
Our targets here are 1.31 and 1.32. Those targets, however, can be dynamically changed, i.e., according to live price action, should circumstances vary.
Stop-loss (Invalidation of Analysis):
Our stop-losses here are in the 1.27700 range.
Side-notes:
Please keep in mind that the markets have been reacting strongly to news these days, specially on smaller majors, such as the NZD and the AUD, which could create instability. We are trading the whole forex system here, not only a pair. These positions should be watched closely.
Please leave your comments below to inspire us to continue our work and don't forget to follow us! Feel free to send us a direct message with any doubts you might have and experience a great trading session!
Please read the full post before considering taking action.
GBP moves have been, over the past year or so, fueled more by Brexit news than any scheduled release of British economic reports. While GBP has been taking bearish pressure and USD has been overperforming for the past couple of weeks, we are taking a cautious approach here and will try to profit from a market correction.
Charts here are tricky. From the previous high in mid-March, we are witnessing the formation of a descending wedge, which could see its completion before the breakout upwards on the 1.28 level. A rounding bottom got formed recently, indicating a possible trend reversal, all the while the hidden bearish divergence in the RSI reads a "sell the rallies" situation. Should it continue upwards, we will probably see regular bearish divergences on the RSI all the way to the top, which usually occurs in these cases.
How to Proceed:
We opened a long at the 1.29 level, with scaling orders following the trendline all the way to the 1.28 price range.
Take Profit:
Our targets here are 1.31 and 1.32. Those targets, however, can be dynamically changed, i.e., according to live price action, should circumstances vary.
Stop-loss (Invalidation of Analysis):
Our stop-losses here are in the 1.27700 range.
Side-notes:
Please keep in mind that the markets have been reacting strongly to news these days, specially on smaller majors, such as the NZD and the AUD, which could create instability. We are trading the whole forex system here, not only a pair. These positions should be watched closely.
Please leave your comments below to inspire us to continue our work and don't forget to follow us! Feel free to send us a direct message with any doubts you might have and experience a great trading session!
