Looking at the main chart, a long term daily was violated which also happens to be the neckline of the pattern that had formed. The price has already broken through the daily 50 and now i am waiting it to retrace to 1.3000 before i make my entry and take this pair LONG. The possible risk to reward ratio on this one is around 1:3 or 1:4 but however as we go along the fundamental and technical factors must be taken into consideration to adjust the TP AND SL levels
The formed right the 61.8 fib retracement of the previous weekly swing (see the chart below) adding to further confluence that the pair is ready to go up!
Adding to the further more confluence, the weekly chart attached below indicates the has been broken and now is seems to be retesting the upper
Have a read to the related ideas as well, as the has developed and the pattern is yet to be invalidated either.
Well with all the done which points to this pair heading upwards, lets look at the fundamental parts. The GBP recently is heavily relient on the brexit news and the recent developments show the deal is likely to be wrapped up in october this year. should this happen then we can see the GBP appreciate against many pairs. However against the USD the gains might be limited as the USD has been doing well this year and the FED rate hike expectations could mean less gain for this pair. Thus taking this all into consideration, the SL AND TP will be adjusted accordingly. However other GBP pairs are likely to gain more value such as the EURGBP , GBPNZD AND GBPJPY OR GBPCHF
But for now this pair seems to show a lot of confluence to the upside and i would probably enter the trade once the price retraces to around 1.3000. stay tuned for any updates and signals. thank you
This pair seems to be better at taking the GBP LONG. So stay tuned!