GBPUSD - Short trading idea
GBPUSD recently went through a positive short-term period, with the price taking nearly 300 pips from its low at 1.2675.
Despite that, the bigger picture shows a trend that is still down:
From a technical point of view, we have a sustained downtrend line that seems to hold the pressure of buyers. Last touch of that downtrend line was followed by a huge bearish candle, pushing the price down by 70 pips in 20 minutes. Sellers are still on the market.
There is a possible formation of a pennant, with a short-term uptrend line at the bottom (highlighted in red in the chart), so we will double-check market action if and when the price reaches that level.
Putting this trade on a larger context, GBP might face a tough period, with the UK that is struggling to handle a very difficult situation related to the coronavirus.
Yesterday, Prime Minister Boris Johnson stated that this the UK is at 'critical moment' with coronavirus.
For the first time, daily cases in UK broke the barrier of 7,000, reaching a new critical level at 7,143.
With more news coming today and the Nonfarm Payrolls for the USD coming tomorrow, we can expect good volatility, so be careful and manage your risk properly.
You can follow this trade real time on my account in the Swing Trading course on Udemy.
Good luck!
Despite that, the bigger picture shows a trend that is still down:
From a technical point of view, we have a sustained downtrend line that seems to hold the pressure of buyers. Last touch of that downtrend line was followed by a huge bearish candle, pushing the price down by 70 pips in 20 minutes. Sellers are still on the market.
There is a possible formation of a pennant, with a short-term uptrend line at the bottom (highlighted in red in the chart), so we will double-check market action if and when the price reaches that level.
Putting this trade on a larger context, GBP might face a tough period, with the UK that is struggling to handle a very difficult situation related to the coronavirus.
Yesterday, Prime Minister Boris Johnson stated that this the UK is at 'critical moment' with coronavirus.
For the first time, daily cases in UK broke the barrier of 7,000, reaching a new critical level at 7,143.
With more news coming today and the Nonfarm Payrolls for the USD coming tomorrow, we can expect good volatility, so be careful and manage your risk properly.
You can follow this trade real time on my account in the Swing Trading course on Udemy.
Good luck!
Trade closed: stop reached:
Trade closed slightly before reaching the stop loss, due to a huge sudden bullish candle.
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