It’s obvious that over the past few weeks, the GBP has been-and may continue to-on the rise. However, considering all technical considerations in the daily chart, it looks like the bull momentum is waning. Even though picking out tops is not really a profit making venture, I will look to refine entries in the 4HR chart and sell.
Over the past 24 hours, it’s clear that the GBP is weak and with a stochastic sell signal in place, looking for shorting opportunities in the 4HR chart may turn out profitable. Supportive of the bear momentum is the obvious sell signal in the 4HR chart and what is needed now is a break below the middle BB. In the 4HR chart, the middle BB is the main support line and if sellers breach it then we can as well trade a bear break out.
However, notice this though. This might be the first phase of GBP depreciation and a confirmation is needed before going waist deep short in this pair. I therefore recommend small positions with stops just above today’s highs at around 1.84
This is my GBPAUD trade plan:
Stop Loss: 1.84
Take Profit: 1.79
Let me know what you think. Enjoy your weekend.