GBP/USD rallied from 1.6050 last week, and is pushing towards 1.63. The 4H chart shows a market that found a price bottom, and had achieved a breakout projection based on the height of the price bottom, which was about 100-pips. Then we saw price hold around 1.6276 for the second half of last week.
Note that the RSI is around 60. If the market is bearish this week it should hold below 60. Seeing the that prevailing trend is sharply bearish, we can have some bearish bias.
There is still downside risk toward 1.6050, down to the 1.60 handle.
GBP/USD 4H Chart 9/15
Let's consider a short position if price falls below 1.6250. Let's say the entry is at 1.6240.
If we put a stop at 1.6310, we have a 70-pip risk.
The target of 1.6050 has a potential reward of 190 pips, and the more aggressive target of 1.60 has a potential reward of 240 pips.
The conservative reward to risk is 190:70, or 2.7:1. The more aggressive target of 1.60 has a reward to risk of about 3.40:1.
Trade Safe, Trade Well!
Note that the RSI is around 60. If the market is bearish this week it should hold below 60. Seeing the that prevailing trend is sharply bearish, we can have some bearish bias.
There is still downside risk toward 1.6050, down to the 1.60 handle.
GBP/USD 4H Chart 9/15
Let's consider a short position if price falls below 1.6250. Let's say the entry is at 1.6240.
If we put a stop at 1.6310, we have a 70-pip risk.
The target of 1.6050 has a potential reward of 190 pips, and the more aggressive target of 1.60 has a potential reward of 240 pips.
The conservative reward to risk is 190:70, or 2.7:1. The more aggressive target of 1.60 has a reward to risk of about 3.40:1.
Trade Safe, Trade Well!
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