GBP/USD - Excellent Swing Trading Opportunity

Technical Confluence:

1. Long-term bullish trend-line now acting as new resistance
2. Bearish rejection of trend-line connecting lower swing highs
3. Rejection of key 1.55 S/R level
4. Rejection of 50 EMA
5. High-Test Candle

Fundamental Confluence:

1. GBP Manufacturing PMI came in at 51.4 vs a 52.6 forecast. The UK economy is now hovering above the important 50.0 neutral level as the manufacturing sector within the UK continues to weaken.

2. Manufacturing Production m/m came in at a -0.6% contraction vs 0.1% expected growth. This adds even more support to the contracting manufacturing sector within the UK

3. The official bank rate was kept at a record low 0.5% on Thursday, July 9th as the BoE reduced its hawkish tone eliminating any risk of a possible U.K rate hike in the near future.

4. The Greek Bailout Deal has reduced overall market risk, and investors are now piling back into the US Dollar             . I am expecting the next leg of the USD bull market to resume for the remainder of the summer.

Entry Details:

I have entered this trade with a hybrid strategy utilizing two positions.

1. Each position has been entered at 1.54850, with each stop-loss at 1.55850
2. The target for position 1 is at 1.53850 offering a 1:1 Risk-Reward
3. Once Target 1 is reached, position 2 will be moved to break-even.
4. I will then utilize smart stop-placement to generate as much profit potential out of position 2 as possible.
+1 Reply
Man crazy move! Onto the next one!! :)
+1 Reply
ElizaBay PRO
a year ago
what just happened?!
ActiveTrader PRO ElizaBay
a year ago
BoE ended up talking up a rate hike at the press conference, ended up skyrocketing the GBP higher
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