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!
Recommended Content
Editors’ Picks
EUR/USD regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.