It is obvious that gbp/usd has been in a long term trend (over a year)
and the best type of playing the pair was buying of dips. It has been moving up
in waves over a year and I believe we are going to see another cycle up. To tell
the truth the first wave up in a bullish move is about to end. If you look at
the chart you can see that the pair found its bottom on the first of March and
made two strong moves up. I expect it to run some 50-100 pips more from a
current level before reversing and a leg down next week.
I marked support and resistance levels on the chart. You can play both
waves, but the trend is up now. I expect the pair to reach previous top of
1.4350 by the end of the month and possibly move higher later in the year,
provided price action confirm bullish trend continuation pattern.
There is some chance of the pair going sideways and forming a narrowing
range, but I favor the pair moving up in waves, the way it went down from the
25th of January. So, there are hundreds of pips to be claimed and a
lot of money earned. I have positions in gbp/usd and gbp/jpy opened expecting
them to close tomorrow or Friday and wait for another opportunity to buy.
Disclaimer: All trading involves risk. Only risk
capital you’re prepared to lose.
Past performance is not an
indication of future results. This
content is for educational purposes
only and is not investment advice.