100 pips GBPUSD - short-term [weekly] price action outlook

After market opening on 9 April 2018 the GBPUSD moved just over 50 pips long.

Fundamentals still support another 100+ pips long.
1. The USD: PPI - red news due on 10 April is likely to support further upside price movement in the pair.
2. With the upside trend intact as per the Daily & 4hr chart, the GBP: Manufacturing production-red news release, should be able to provide
additional fuel for the upside in the GBPUSD.
3. The USDX weakness that is still @ play is nicely supporting the long bias in the GBPUSD.
4. Hopefully the USD: cpi - red news release on 10 April
2018 will continue to support the weakness in the USDX.

Not forgetting the most anticipated meeting minutes from the FOMC on 10 April 2018, which will likely put a spanner in the works if it comes out more HAWKISH.

If the long price action in the GBPUSD is maintained after all the previously mentioned red news releases of this week, then on 12 April 2018 when BOE: Governor Carney speaks, we will probably get the last boost in the GBPUSD to take price through 1.4245

And that, ladies and gentleman, is how another 100+ pips is possible

Then again, anything can happen.

Comment:

UPDATE: Straight out of the gates during the London session, no retracing, price reached target level 1 @ 1.4176 +. Now for the US-red news....

Remember anything can happen.

Comment:

SADDLE UP for the NEXT MOVE: US-red news came out better than expected, therefore allowing for the GBPUSD to retrace instead of heading straight towards the 1.42000 target. This event created a very nice opportunity to consider buying "dips" @ between the current price and 1.41550.

Remember anything can happen.
PS. please do not consider the above as investment advice, just an idea

Trade active:

Got in long on the dips and is now targeting 1.42000 with a 30 pip stop.

Remember, anything can happen.
PS. please do not consider the above as investment advice, just an idea

Comment:

UPDATE: Red news events that will have an impact on future price movement are as follows: In the London session we have the GBP manufacturing production, if this number comes out better than forecast we can expect to see the GBPUSD reach and overshoot the target of 1.442000. Worse than forecast present just the reverse scenario. Later during the NY session we have some heavy duty Red news items such as US-CPI and FOMC meeting minutes. Note that we can expect the US red news to really add some fuel to the fire in terms of giving long momentum to the price action. Keep your eyes on 1.42500 + should the US news be supporting a weaker USD.

Then again, anything can happen
PS. please do not consider the above as investment advice, just an idea

Trade active:

What an early bird move!, price hit the second target of 1.42000 and breached it, looking now at 1.42500.

Then again, anything can happen
PS. please do not consider the above as investment advice, just an idea

Comment:

UPDATE: GBP-red news came out worse than expected, use this opportunity consider buying at cheaper levels on the retracement. Who knows what the US - news might bring?

Comment:

UPDATE: Well folks, hopefully some of you probably took advantage of the nice low prices that was offered below 1.41500. During the London session price took out the Asian low and the low that was formed yesterday during the New York session. The stage is now set for price to probably visit and breach the 1.42500 level if the red news item comes out in favor of the GBP. The GBP red-news item later this afternoon New York time (check your event calendars for accurate time). Short term second scenario: should the Carney's speach impact the GBP negatively, price might not immediately visit the 1.42500 area.

Then again, anything can happen
PS. please do not consider the above as investment advice, just an idea

Trade closed: target reached:

There you have it folks!, final target reached at 1.4250 and breached. Who knows where to next? Definitely upside momentum left. However, keep an eye on the USDX for medium term GBPUSD direction. This analysis provided an opportunity where I made 23 trades and collected 266 pips. This trade idea is now OFFICIALLY CLOSED. Be on the lookout for the next loaded trade idea.

If you are of the opinion that the trade idea was useful, please hit the like button, or let me have your thoughts, thank you.

Happy trading and be well.