Taking a GBP/USD long before the figures

Ian Coleman FXStreet

I am not one for trying to pre-empt the data releases but, when we have strong correlation and three support levels lining up at the same zone, I must take a look.

Let us look at the GBP basket first.

We have completed a bullish Gartley formation on the 8-hour chart. This give GBP a bullish/positive bias.

GBP basket 8-hour

GBPUSD weekly chart and we have a medium term barrier at 1.2499. A rejection here and we could see the BC leg of a bat formation commencing (selling rallies).

GBPUSD one-hour chart and we look to be forming a Butterfly pattern completing close to 1.2480. I have three levels of support:

Bespoke support at 1.2319 (dashed purple line).
Yesterdays POC (point of control) at 1.2320 (solid red Line).
Yesterday’s open at 1.2318 (orange line).

With a 30 pip stop this offer a 5:1 risk/reward trade going into the figures.

Note: It must trigger before the figures.

Entry: Long 1.2320 stop 1.2290 target 1.2475

Author

Ian Coleman

FXStreet

Ian started his financial career at the age of 18 working as a Junior Swiss Broker at Godsell Astley and Pearce (London). He quickly moved through the ranks and was Desk Manager at RP Martins at the age of 29.

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