1W: Both 1M and 1W indicated GBPUSD reached very oversold levels due to Brexit.
Bottom Line: Strong support formed. Currently consolidating.
Price action on 1D is fairly at the moment. In a consolidation pattern. The R/R is not favorable for a long entry at current level. That is enough to keep me on the side lines until R/R changes. (See 4H below) 7/28 was really the ideal time to go long.
Some possible set ups:
- A strong resistance break & close above ~1.35 - 1.36, could potentially create a long opportunity following a slight pullback.
- A rejection of 1.35 resistance could create an intra day short (using 1H & 4H charts) if it was well timed.
- And my preference would be GBPUSD stays below 1.3357 until it retest TL support (or yellow box on chart). A reversal candle on 1H/4H would create a long entry.
4H A pullback to yellow zone would create a more favorable R/R set up.
Long @ 1.32160. It's a small position, but I am also short EURGBP adding to my overall long GBP exposure. As a result, I don't have any flexibility to add to position. Even if I had the flexibility, I wouldn't at this time until there was more compelling reasons to do so.
The trade looks ugly right now, but still has time to turn in my favor.
KEEPING SCORE: Loss
Last week was a tough week. First losing week in some time. Bound to happen.