Hi friends,
Today we will discuss about GBPUSD and trade opportunities for the same. I have been bearish on the pair, and I think we can still look to sell rallies. There is a bearish hidden divergence forming on the 1 hour chart as shown below, which can be considered as a sign for our bearish view. There are three critical resistances as marked on the chart below, including 1.6070, 1.6095 and 1.6130. We may look to sell from levels such as 1.6090 and 1.6120 with a bearish divergence on the 1 hour chart and a bearish candle pattern.
Alternatively, there is an up-move trend line as plotted on the 15 min chart shown below. We may look to sell the break of the trend line as well. If the pair breaks the trend line and the support, closes below it, forms a bearish hidden divergence and bearish candle pattern on 15 min chart, then we will jump into a sell trade. This is to be on the safer side. On the other hand, we have entries for the rallies as mentioned above.
Initial target should be the last low at around 1.6010 and final target could be around 1.5960. Stop should be placed above the next resistance in the first case, and above the previous resistance in the second case.
Reviewing yesterday’s Friday’s and trades
There was no major fundamental data released on the last Friday except Canadian Ivey PMI, which came at 51.9 missing the expectations of 53.0. Market remained relatively calm going into the weekend. However, there were initial signs of US dollar strength on Friday as EURUSD and GBPUSD retreated from the highs and traded lower. There was nothing new from the Fisher or Dudley either to trigger major moves in the market.
Fundamental Outlook for the day
Today, no major fundamental events scheduled from the US. Some of the very low risk events include, CB employment trends index and consumer credit. We have some data scheduled in the Asian session like New Zealand NZIER Business confidence, Australia NAB business confidence and Japan’s adjusted current account figure. So, we can expect some movements in the Asian session. Other than this, I do not expect any major impact in the market. US shutdown still the main concern for the market, and investors are eying developments very closely. So, keep an eye on the incoming news from the US on the shutdown to avoid being caught on spikes.
This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: EURUSD, NZDUSD, USDJPY, USDCAD and EURGBP.
Get it HERE: Vladimir’s Markets Forecast
Wishing a Green week friends. Happy trading!
