BULLS WEIGHING IN ON THE GBP/USD…

The GBP/USD have been catching the bid on the current weakness of US Dollar. However, price retraced downwards following a spontaneous surge in strength in the greenback all through yesterday’s New York trading session. Although, the USDollar is currently pushing upwards, GBP/USD on the hourly had printed a long-wicked candlestick (see highlighted oval) at the 1.4130 zone (highlighted in grey) [see H1chart]. This, from a technical standpoint, shows that bulls are not shy of defending the 1.4130 zone – a plausible buying opportunity. Though we are already in this trade since yesterday, traders can still to go long in this setup.

Fig 1: Hourly (H1) GBP/USD Chart

AGGRESSIVE: Bulls can look to go long at the current market price with take profit set at the 1.41210 level and take profit set at the 1.42450 level.

N.B: This set-up is aggressive due to the current strength of the GBP amidst the ongoing short-term strength of the US Dollar. This opens room for the possible downside risk of this set-up. So, in effect, traders without a high-risk threshold should stay away from this et-up.

Traders are always advised to always use a stop-loss!!

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