GBPUSD Setups 08/12 - 08/17 Outlook
Price Synopsis
GBPUSD has been in a downtrend since august 17th after confirming the double top with several bearish moves.
The entirety of the first wave down consisted of FIVE consecutive red days, with one day of "relief" followed by another five days of bearish activity. After the double top / "M" pattern was confirmed, over this 11 day window price had dropped approx. 800 pips.
There are notable gaps on the daily chart and market structure is indicating we could be approaching a reversal area now after a continued movement down for the past 7 days. It would be logical to see an upside move/wick on this upcoming weekly bar at least 50 pips above the open price
Week of 08/12 - 08/17 Trade Idea
Looking for buy entries to be confirmed between 1.272 and 1.269
Intended stop loss will be a maximum of 35 pips once an entry price has been decided on during SUN/MON price action
Minimum of 3:1 Reward to Risk with expected Target Levels at 1.28250 / 1.29 / 1.3 depending on candlestick development but must remain open minded to a possible sell scenario if price indicates the probabilities of a continued move lower towards 1.26 or the half quarter level at 1.25
Some Fundamentals
We know that the BREXIT referendum occurred in June 2016 and the plans for Britain to leave the European Union are expected to be final in March of 2019 however... several sources are indicating rising fear and uncertainty.
Upcoming dates to be mindful of include the 18th of October and the 13th of December 2018 EU Summit as the agenda will cover negotiations for trade deals, how the transition to independence will work, etc. On March 29 2019 Brexit is scheduled to happen and the suggested transition period to allow consumers and businesses to adapt is supposed to last until December 31 2020
I am not (yet) a licensed financial adviser and this analysis does not constitute as financial advice. This is for educational purposes and you accept sole responsibility of any and all trades you take... investing with real money involves risk!
GBPUSD has been in a downtrend since august 17th after confirming the double top with several bearish moves.
The entirety of the first wave down consisted of FIVE consecutive red days, with one day of "relief" followed by another five days of bearish activity. After the double top / "M" pattern was confirmed, over this 11 day window price had dropped approx. 800 pips.
There are notable gaps on the daily chart and market structure is indicating we could be approaching a reversal area now after a continued movement down for the past 7 days. It would be logical to see an upside move/wick on this upcoming weekly bar at least 50 pips above the open price
Week of 08/12 - 08/17 Trade Idea
Looking for buy entries to be confirmed between 1.272 and 1.269
Intended stop loss will be a maximum of 35 pips once an entry price has been decided on during SUN/MON price action
Minimum of 3:1 Reward to Risk with expected Target Levels at 1.28250 / 1.29 / 1.3 depending on candlestick development but must remain open minded to a possible sell scenario if price indicates the probabilities of a continued move lower towards 1.26 or the half quarter level at 1.25
Some Fundamentals
We know that the BREXIT referendum occurred in June 2016 and the plans for Britain to leave the European Union are expected to be final in March of 2019 however... several sources are indicating rising fear and uncertainty.
Upcoming dates to be mindful of include the 18th of October and the 13th of December 2018 EU Summit as the agenda will cover negotiations for trade deals, how the transition to independence will work, etc. On March 29 2019 Brexit is scheduled to happen and the suggested transition period to allow consumers and businesses to adapt is supposed to last until December 31 2020
I am not (yet) a licensed financial adviser and this analysis does not constitute as financial advice. This is for educational purposes and you accept sole responsibility of any and all trades you take... investing with real money involves risk!
Trade closed: target reached:
Analysis Complete