GBPUSD breakout imminent the week of 01 Feb 2021
Recent price action on this pair has been choppy but grinding higher all the time. As my weekly chart (below) shows, the 1.3750 area has become a barrier that price has been unable to overcome since end Apr 2018.
Back to the H4 view, let us examine price action for the last 10 days. We can see a series of higher lows, while the highs have remained consistently capped in the 1.3750 region. I see this PA as a squeeze in progress. I am expecting that the bears will weaken while the bulls will grab a better control of the market during the next few days. I am watching with a bullish bias, expecting price to impulsively break out to the upside sometimes in the coming week, while also keeping an eye on DXY.
For trade location, an aggressive entry would be when breakout occurs, while a conservative approach would be to wait for a retest of the breakout line. The region around 1.4000 would a good choice for the initial target, while 1.4350 is certainly possible for the patient trader.
If my analysis is correct, we could have a nice Multiple R trade either way.
If you like my analysis please give it a “thumbs up” and follow me to get immediate notifications.
As always, please use sound money and risk management in all your trades.
For trade location, an aggressive entry would be when breakout occurs, while a conservative approach would be to wait for a retest of the breakout line. The region around 1.4000 would a good choice for the initial target, while 1.4350 is certainly possible for the patient trader.
If my analysis is correct, we could have a nice Multiple R trade either way.
If you like my analysis please give it a “thumbs up” and follow me to get immediate notifications.
As always, please use sound money and risk management in all your trades.