GBPUSD – BEARS STILL IN CONTROL

Following up on my last post on this pair, the wedge support on 15 Dec was broken and our target was 1.2326 that was reached on 20 Dec. I also mentioned that a close below 1.2326 would open up to the Oct lows near 1.2090. Price action over the last 48 hours confirmed that 1.2326 holds as resistance on a daily closing. It seems as if the pair is trying to form a base at 1.2200 and a close below this price could be favourable for further selling. A re-test of 1.2326 followed by a bearish signal could also provide a good opportunity to sell. The challenge is if you are not in a trade already it will require discipline to find an entry tor a good risk/reward ratio as the 1.2090 target is just about 110 pips away, so don’t be in a hurry and if nothing sets up for a sell, leave it alone as it has given a reward of 300+ pips. A daily close above 1.2326 would negate the bearish bias for now.

GBPUSD - bears still in control

Source: Maryna

7 thoughts on “GBPUSD – BEARS STILL IN CONTROL”

  1. Looks like we might get a good entry tomorrow/Fri. I’m looking for price to breach top of your channel (maybe to 1.24) then fall again.

  2. Profile photo of Kash Kash says:

    Hi Marnya, I’m a novice FX trader and have read your recent comments and can say I have learnt alot from your posts and do indeed hope you continue your contributions.
    With respect to GBPUSD trade idea we had a daily close of 1.23236 yesterday, just shy of 1.2326 you suggested as the line in the sand between a break up or down. With the insights you shared coupled with my bearish view I am currently a seller at the 4hr downtrend line (1.2349) 1st tgt 1.2215 support and a tight SL. Many thanks

  3. Profile photo of Maryna Maryna says:

    Hey Kash, USD weak today, so be cautious with your trade. H4 is oversold, but the pull-back may not be as big if USD stays weak. I posted a post a while back on USD with the elections and that a weaker USD can be expected until the inauguration based on past history. SKYPE me if you need help.

  4. Profile photo of Kash Kash says:

    Hey Maryna, tx for your reply. I got stopped out on my GBPUSD SELL at my SL of 1.23623 and this price is exactly the High of the day thus far. It seems statistically impossible to pick the high of the day to 5 decimal places (my SL on the sell), & even more so that I have been stopped out exactly on a high/low of the day multiple times in the last 12 months on other trades. My question is, what is the high of the day for GBPUSD showing on your charts nowish, say 9:42GMT?
    and…can you recommend a forex broker? Traders Way does not look suitable for an Australian client for support and other reasons. tx 4 your help

  5. Profile photo of Maryna Maryna says:

    Kash, I will only know the high for today when the day is over and as per my post I cautioned on the 1.23260 area, Not sure what time-frame you used, but I normally watch higher time-frames for confirmation level and you can see on the H4 that the market struggled to go higher than the 1.23550 – 4 H4 candles got stuck there which is a sign that bulls are struggling and only a few pips higher than the 1.23260 price. Remember, the market does not always go TO THE EXACT PRICE, and always allow for a 10-15 pip deviation. I use FXPRIMUS as a broker and they are EU regulated. Tradersway is not regulated at all!

  6. Profile photo of Kash Kash says:

    Maryna, I was referring to the High thus far today that GoMarkets(my FX bro) in Australia is quoting now 11:07 GMT for GBPUSD which is 1.23623-my exact SL on an open sell order…I was curious if my broker was so-called ‘stop-hunting’, if that even exists. So I guess I am curious if FXPRIMUS for example is quoting a different high price so far for GBPUSD today. I appreciate you taking time to write to me.
    I do recall your comments about potential USD weakness leading into the inauguration also, now that you mention it. Forgot! Didn’t even consider a broker that is regulated….guess I gotta a bit of homework to do!

  7. Profile photo of Maryna Maryna says:

    Kash, call me on SKYPE please as i only use 1 screen and difficult to type so much. Thanks!! I’m a trader, not a typist -hie, hie!!

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