The chart has finally aligned on GBPUSD with a very strong bullish signal. If you checked Friday's NFP post you would have realized that I did have two trades open, 1 USDCAD sell and 2 GBPUSD buy. GBPUSD was in the red all of Friday but this morning it is in the green and it seems to be getting better and better!
This trading week is weak on data with only 1 "red" data release coming out of the UK and 5 out of the USA but as I notified the members in the forum, we do have plenty of possible market movers on the sidelines.
This trade idea is a trend trade as GBPUSD is still making higher highs and lower lows I thus believe that the trend on GBPUSD is still up. At least on the long-term and medium-term picture.
Here is GBPUSD's daily chart, it holds all my reasons to enter, together with my SL and possible TP levels.
(click on image to enlarge)
Here's what my chart says... the purple areas mark out the massive head and shoulders pattern sitting at the lowest low on GBPUSD. The dotted trend lines point to the key support levels and the full (yellow) trend line supports the current up trend.
As you can also see, recent price action has brought price to the 30% bullish reversal level.
Giving us a total outcome of 3 key support levels.
The 1st TP is about 700 pips away, the 4th TP level is 1,400 pips away and I surely do believe it will be reached.
My SL is just below 1.3000.
Let me know if you will follow this trade idea or if you have any counter ideas on GBPUSD.
Cheers and happy Monday and new trading week!
Seize those pips!