I think GBPUSD is a great trade setup to follow during the next week. Here is my plan. In the long run I expect the Cable to continue higher and potentially duplicate the first wave well seen on the Daily chart, meaning 1.6300 – 1.6400 zone. However I believe the current correction can take us lower so we should be looking for sell opportunities in the short term before we switch to bullish mode again.
Alternatively if the pair breaks above the 1.5800 level I will focus on the buy scenarios, in other words buy dips.
To summarize – we look for sell setups in the short term as long as 1.58 holds. If and when price reaches 1.5580 zone we can start looking for buy opportunities.
Technical Analysis:
W1 – False break
H4 – Potential double wave down
Entry:
H1 – Look for double wave correction on the H1 chart. Once completed follow the up trend line and most recent support zone to be broken which should push the pair lower.
Target 1 – 1.5636
Target 2 – 1.5580
Stop Loss – above 1.5800
Video Explanation:
Yours,
Vladimir
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