Long GBPUSD at potential support zone

FX:GBPUSD   British Pound / U.S. Dollar
216 2
Long Trade Parameters:

Entry: Long GBPUSD in the 1.6630 /1.6675 zone
Take profit1: 1.6720 - (Note that 1.6728 is the Weekly Pivot )
Take Profit2: 1.6840
Stop; Below 1.6540

Reasons for the trade:
I'm expecting to see some pullback in the GBPUSD after more than a month of downside action without any decent retracement.

I'm expecting to see the 1.6575-1.6630 zone to act as support / buying area for a bounce:

- Price is reaching the 200dma channel low at 1.6630 (lowest magenta line on chart).
- 1.6610 is the 61.8% retracement point of this year's range
- 1.6600 test failed to attract more selling, this morning.
- 1.6615 is this week S1 level.
- 1.6570 is this year opening price.
- DXY started the week quite strong reaching the monthly R1 today at 82.10 but "could" slow down or even reverse, after the fomc minutes are released.

If this setup is correct we should see a "technical bounce toward the 100dma at 1.6880 now (the 100dma channel low being at 1.6848 - lowest blue).

This idea and trade id dedicated to @nmike ;-)

As always market will make his move and prove the idea / trade right or wrong...
"Alea iacta est"
we could get a bounce from oversold conditions but I expect more downside
fxswing nmike
I agree that the downside potential looks to be the path of least resistance, and I'm only expecting a temporary pullback not a change of the month long trend.
+1 Reply
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