So the big news has been the GBP and how Brexit could be seeing a re-write, with Prime Minister Boris Johnson sending in a bill to parliament. The Pound has weakened considerably. Making multiple swing waves in its trend.
First up, the GBPUSD is at a major support zone on the daily chart. Not just a support zone, but a FLIP zone (an area that has been both support and resistance). This is a very key and strong level, and is generally where we see the exhaustion of a previous trend, and the beginning of a new trend. Let's take it down to the 4 hour chart to find out what we see:
Take a look at that 36 hours of candle basing at support. This is telling. Now my followers know that I prefer a pattern. We like to see multiple lower highs followed by a reversal pattern. We do not have that as of yet, but we do have the potential to perhaps pullback and form a double top. Of we can make our first higher low.
A similar set up on the GBPJPY:
In fact, I like the GBPJPY much better. A more well defined range also occurring at a major support zone. There is a possibility to enter now and place our stop loss just below the previous lows. This would leave you with a stop loss of less than 70 pips, with a target of 300 pips or more if we take profits at 138.50. I would recommend entering an initial small position here. There is a chance price just falls below and makes new lows, or fake outs. This is the risk that we accept. The real trigger is the breakout higher of the range, above 136.50. We will add more to our position once that occurs.
Other pairs like the GBPNZD show something similar:
GBPCHF:
In fact, I can also post EURGBP, GBPAUD and GBPCAD but you get the point. All Pound pairs have made multiple swing moves and are now showing an indication of basing at a major support/flip zone. Yes, there is significant fundamental and major news ahead for the Pound, so keep this in mind. There is also a possibility of that fake out move as explained earlier, which may see price move below these zones before the move higher. This is why the safer option is to await for the pattern and breakout of the pattern.
First up, the GBPUSD is at a major support zone on the daily chart. Not just a support zone, but a FLIP zone (an area that has been both support and resistance). This is a very key and strong level, and is generally where we see the exhaustion of a previous trend, and the beginning of a new trend. Let's take it down to the 4 hour chart to find out what we see:
Take a look at that 36 hours of candle basing at support. This is telling. Now my followers know that I prefer a pattern. We like to see multiple lower highs followed by a reversal pattern. We do not have that as of yet, but we do have the potential to perhaps pullback and form a double top. Of we can make our first higher low.
A similar set up on the GBPJPY:
In fact, I like the GBPJPY much better. A more well defined range also occurring at a major support zone. There is a possibility to enter now and place our stop loss just below the previous lows. This would leave you with a stop loss of less than 70 pips, with a target of 300 pips or more if we take profits at 138.50. I would recommend entering an initial small position here. There is a chance price just falls below and makes new lows, or fake outs. This is the risk that we accept. The real trigger is the breakout higher of the range, above 136.50. We will add more to our position once that occurs.
Other pairs like the GBPNZD show something similar:
GBPCHF:
In fact, I can also post EURGBP, GBPAUD and GBPCAD but you get the point. All Pound pairs have made multiple swing moves and are now showing an indication of basing at a major support/flip zone. Yes, there is significant fundamental and major news ahead for the Pound, so keep this in mind. There is also a possibility of that fake out move as explained earlier, which may see price move below these zones before the move higher. This is why the safer option is to await for the pattern and breakout of the pattern.