Looking weekly chart, this pair is in a down trend, we are bellow 200 EMA and price is making LH and LL.

gbpusd-w

When we move down to daily chart, we can see price will most probably close bellow horizontal support at round 1.5176 for the 4 day in a row, which is quite a bearish sign.

gbpusd-d

Looks like today’s candle again rejected that previous support, now turn into resistance.

On the other side, Stochastics is in oversold territory already and when we move down to 1h chart, we can see already Stochastics divergence, since price is making LH and LL and at the same time Stochastics is making HH and HL.

gbpusd-1h

So short entries are still favorable, but we need to be open to the other side also. If we are looking for long entry, one, more aggressive could be at 78.6% Fibonacci retrace, second more conservative can be at break of 1.5180 level and then after a retest.

Tomorrow there is NFP day, so it could be that we will not get much movement and volatility till then, but if we could find a trade, which will move 30-50 pips in our favor, we could move our SL to BE and then wait for the news to appear or consider closing that trade.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.