A1 Trading Company

June 26, 2020

Trade Ideas for the British Pound

Frank Cabibi

Today, we're taking a look at GBP/USD and sharing our analysis on the pair as well as trade ideas.

Trade ideas

Here we got GU on the daily chart. Using the fib, you can see that prices respected that 78% and 61.8% level on the chart. Analysts said that the break in the 1.2504 level confirmed their bearish thought according to fxstreet.com. They also say that a break below 1.2400 will be another sign to sell the pair. For trades on the daily, you could look at resistance at the 61.8% fib level where it respected it before and resistance level formed as well. GU may look to break out of the wedge too and close underneath.
Sell targets could be placed at 1.28150, 1.25166 or 1.23050 (sell stop).

Here's GU on the 4H chart. It recently hit support and bounced up while resistance lies around 1.24545. Very clear trend lines forming to the downside on the pair and will probably continue to respect them.
Key targets on the 4H chart are:
Sell at 1.24545, 1.23903, and 1.23482.

On the 15 min chart, we see some buying pressure and think prices will likely continue up until it hits 1.23780s level. Some broken support turned to resistance and will likely run into more selling if prices reach here.

Conclusion

As you can tell, we are pretty bearish on pound dollar now as US markets sell off today. Multiple short entries are forming on various time frames indicating that we are in a pretty strong downtrend. Because GU is so correlated to US indices, we're watching trader sentiment on the US market which has been bearish off news today. We expect the market to close in the red and for GU to follow. Next week, I will most likely still have my bearish thesis on both the market and this currency pair until we see signs of a reversal or great news comes out. Banks were hit hard yesterday after the Fed's announcement on giving them certain monetary and stock limitations. I am continuing to look for shorts in the meantime.

Featured Photo: https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.npr.org%2F2019%2F08%2F29%2F755014398%2Flike-the-empire-itself-the-british-pound-is-not-what-it-used-to-be&psig=AOvVaw39a_RApPR-Gu1sAqwI_DF9&ust=1593275239030000&source=images&cd=vfe&ved=0CAIQjRxqFwoTCOjU4_fyn-oCFQAAAAAdAAAAABAD


Thanks for reading! If you are interested in joining our trading community, we have chat rooms, trade alerts from our top traders, and educational content. You can join using the link below, and get a discount on your membership.

Disclaimer:

Please note that this email is my personal opinion only. I am not a licensed financial advisor, and any information shared or discussed is not to be construed as investment advice. Trading and investing involves a degree of risk, and is not suitable to all investors. Please consult with your financial advisor before making any sort of investment decisions.

A1 Edgefinder

AI- Generated Trading Setups
AI-generated bullish/bearish bias setups on forex currencies, gold, & indices.

Discount code: 'READER'

Access Now

Free

Trading Plan Template
Struggling to build a successful trading plan? Download our template to get started today!
Download
Expecting A Pullback

Today's economic figures came out in US and Canada. GDP came in higher than expected in Canada while the price of goods purchased by consumers was lower than last month. Here are some pullback ideas for USD and CAD from GDP and PCE numbers. EdgeFinder Analysis NAS100 is a bullish reading on the EdgeFinder still. […]

Read More
Traders Wait For More Inflation Data

This week has brought more inflation data with it regarding the USD's PCE and PMI numbers. Powell is also set to speak this Friday about monetary policy going forward. The RBNZ will also release their latest interest rate news tomorrow with expectations of an unchanged rate at 5.5%. EdgeFinder Analysis GBPUSD is a bullish bias […]

Read More
Trading Into PMI Data on EUR, GBP and USD

This week is a big PMI week for Europe, UK and US. Additional inflationary metrics will add to the overall sentiment of these countries' monetary policies going forward. Here are some setups for the coming week on these currencies. EdgeFinder Analysis GBPCAD is now a +7 on the EdgeFinder as we wait for CPI news […]

Read More
DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here
Home
Edgefinder
Signals
There is a significant degree of risk involved in trading securities. With respect to foreign exchange trading, there is considerable risk exposure, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or currency pair. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you can afford to take the high risk of losing your money.
homesmartphonelaptop-phonecrossmenu linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram