Cable was definitely another big loser last week. After reversing from the resistance at 1.45, it was printing lower prices almost every day last week. It had finished the week below 1.41.
Daily charts suggest that downtrend is intact and it’s reasonable to assume the double bottom might be formed at 1.3850 sometimes within the next 8 weeks.
Before this is the case, GBPUSD could see a correction to the upside from the current levels.
There is a major support at 1.41 (marked in yellow), which was very responsive in the past.
Daily stochastics suggest the reversal to the upside could take place in the short term.
Looking at intraday charts, the pair shows some reversal from the support mentioned above.
If the current level is a technical higher high, we could consider to enter longs on pullback around 1.4100.
If the price fails to print higher and breaches the recent low 1.4050, its likely GBPUSD will be printing much lower after that. Bears could hunt a good short setup around the same levels, assuming the prices breaks the lows first.
At the moment, Cable printed double top on 15min charts, I would like to wait for a clearer higher high first, before I can consider this setup.
Stops below the recent lows, target 1.43- 50% Fib level.
Date: 03/28/2016
Pair: GBPUSD
Price: 1.4131
Trade: Buy Limit
Lot Size: 0.03
Stop Loss in Pips: 100
Take profit in pips: 150
Risk of Equity: 2%
My Trading Checklist
ARE THERE MAJOR RISK EVENTS TODAY/THIS WEEK: No
Is the market risk off or on? SP500, DAX, NIKKEI. Are the down or up: Not clear to me
Is this trade with the trend?: Reversal
Did I see it yesterday?: Yes
Is this a pullback measured by Fibs?: Yes
Am I buying support?: Yes
Am I selling resistance?: N/A
Is this entered during London’s session?: Not sure. Its a pending order
Did the price pulled back from 200MA on 15Min?: Yes
Are stochs extreme on multi charts?: Yes
Where is the price in terms of Pivots Points?: Resistance.
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