GBPUSD Triggers 1.5127 Target- Cautiously Bearish Below 1.53
GBPUSD Daily Chart
Chart Created Using FXCM Marketscope 2.0
Technical Outlook
Third objective at 1.5127 has now been achieved (61.8% retracement of the mid-March rally)
Reaction at 1.5127 mark / Daily RSI hold above 40 – Suggests increased risk of near-term pullback
Broader bias remains bearish below 1.5310 – Breach targets resistance range 1.5407-1.5423
Break below today’s low (on a close basis) offers further conviction on short scalps
Support break eyes objectives 1.5012, 1.4920
Scalps look cautiously higher, medium-term corrections to be sold
Key Events Ahead- BoE minutes tomorrow morning
GBPUSD Scalp Chart
Scalp Notes: Bottom Line: Although our longer-term bias remains weighted to the downside, the pair may continue to correct higher in the near-term, offering nimble long-scalps on breaks of resistance and favorable medium-term short entries higher. Intra-day RSI has remained bearish since Monday evening in New York with a breach above trendline resistance dating back to this week’s high offering further conviction on long entries. The broader outlook remains bearish so long as price respects the 1.5310 resistance barrier.
*We will remain flexible with our bias with a break below 1.5112 eyeing subsequent support targets. It’s extremely important to give added consideration regarding the timing of intra-day scalps with the opening ranges on a session & hourly basis offering further clarity on intra-day biases. Use this app to distinguish the various trade sessions.
Key Threshold Grid
Entry/Exit Targets | Timeframe | Level | Significance |
Resistance Target 1 | 30min | 1.5186 | 23.6% Fib Retracement |
Resistance Target 2 | 30min / Daily | 1.5218 | 50% Fib Retracement |
Resistance Target 3 | 30min | 1.5260 | Soft Resistance / Pivot |
Bearish Invalidation | 30min / Daily | 1.53 – 1.5310 | 38.2% Fib Retracement(s) |
Break Target 1 | 30min | 1.5335 | Soft Resistance / Pivot |
Break Target 2 | 30min | 1.5359 | 50% Fib Retracement |
Break Target 3 | 30min | 1.5380 | Soft Resistance / Pivot |
Break Target 4 | 30min / Daily | 1.5407 - 1.5423 | 23.6% & 38.2% Retracements |
Bullish Invalidation | 30min / Daily | 1.5112-1.5127 | May Low / 61.8% Retracement |
Break Target 1 | 30min | 1.5080 | Soft Support / Pivot |
Break Target 2 | 30min | 1.5040 | Soft Support / Pivot |
Break Target 3 | 30min / Daily | 1.4996-1.5012 | 618% Fib Extension / 78.6 Retrace |
Break Target 4 | 30min | 1.4920 | 88.6% Fib Retracement |
Daily | 121 | Profit Targets 27-30pips | |
Other Scalp Setups in Play- Scalping the USDCHF Correction- Buying Dips Above 0.9540
For updates on this scalp and more setups follow him on Twitter @MBForex
---Written by Michael Boutros, Currency Strategist with DailyFX
To contact Michael email mboutros@dailyfx.com or Click Here to be added to his email distribution list
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