Overview- GBP/USD is currently witnessing a big correction after touching yearly
highs at 1.4240. However, is there a case for the buyers? Let us analyze and take a look at
a possible buy set-up.
Analysis - From the chart, you can see that price has formed a bearish flag
on the daily chart, which has a high probability of breaking down. So, if that happens
and price drops to 1.3550 level, which happens to coincide with the 100-day moving average,
there might be a chance for the buyers.
Probable trade set-up - Based on the above analysis, if price drops to 1.3550 level
and bullish price action is seen, buying GBP/USD@1.3550-1.3620 with SL below 1.35 and TP
at 1.38, 1.40 respectively is a pretty good idea.
Disclaimer - This is simply an analysis and not a trade recommendation. The trades will be
executed only if it meets the required criteria.
highs at 1.4240. However, is there a case for the buyers? Let us analyze and take a look at
a possible buy set-up.
Analysis - From the chart, you can see that price has formed a bearish flag
on the daily chart, which has a high probability of breaking down. So, if that happens
and price drops to 1.3550 level, which happens to coincide with the 100-day moving average,
there might be a chance for the buyers.
Probable trade set-up - Based on the above analysis, if price drops to 1.3550 level
and bullish price action is seen, buying GBP/USD@1.3550-1.3620 with SL below 1.35 and TP
at 1.38, 1.40 respectively is a pretty good idea.
Disclaimer - This is simply an analysis and not a trade recommendation. The trades will be
executed only if it meets the required criteria.