Tuesday 25 July 2017

GBP/USD ... Trying For a Breakout ??

Hello Guys,

Posting Again after a Break...

Today's Pair is : GBP/USD

I always do Technical analysis of Pairs for Longer term. Let's see the Chart directly. Following is the Weekly Chart of the pair. 



We have Seen the pair falling continuously from it's all time high of 2.11xx levels in Nov 2011, Consolidated for a good period and again continued it's downtrend since July 2014 to the Lows of 1.19xx in Jan 2017. The Current Chart is of the recent fall from 2014 to 2017, where we can see a Clear downtrend with a Simple Single falling Trend line respected till date and every time price is getting rejected at the trend line.  

at Recent Lows, We can see a Chart Pattern is forming slowly, it's a Bullish Chart Pattern and if it is formed at lows after a decent fall, it indicates a trend reversal with a considerable upside. The Chart Pattern is Cup & Handle Pattern. We will see it in details on the Daily Timeframe to get clear picture of the movement. 


Look at the Daily Chart, The Chart Pattern is clearly visible, The Neckline of the chart pattern is placed at 1.3040, if we get a clear and sustained breakout above the Neckline we will get a confirmation of the trend for a few months ahead. The Chart also shows a Rising Channel to support the upmove. The Most important resistance for the upmove is placed on the Long term falling trendline around 1.3150 just above the Cup & Handle Neckline level of 1.3040. The Immediate support is placed around 1.2890 & 1.2820 

What Will be the Trading opportunity now ?
I will Prefer to buy the pair above 1.3040 and will place the stoploss around 1.2890 which is approx 150 pips away, Once the Price Breaks above the falling trend line Resistance of 1.3150, I will prefer to buy more and hold for targets of 1.3480 & 1.3940 levels which is approx 900 pips reward.

For me the risk reward is in favor of the trade and the trade can be taken with proper risk management and strict stoploss, Here we can not neglect the risk of price getting rejected from the falling trendline again. Better keep trade size small till the trendline resistance is decisively crossed and sustained. Once the Resistance is cleared Increase the trade size considerably and carry for the targeted levels. 

In Short The Recommendation is
BUY GBP/USD
Above 1.3040 (Small Qty) with a Stoploss of 1.2890
Add more Above 1.3150 with a Stoploss of 1.3040
Hold the Trades for Take Profits of 1.3480 and 1.3940
 

Follow proper Risk Management and Trade Carefully, Do not Jump in the trade without understanding the risk associated in leverage trading. Consult your Trading Adviser before taking any trades. 


Disclaimer:
The Adviser is a Global Market Expert and Internationally Known Financial Adviser, The Adviser or his clients may have trading positions in the given instrument. But due care is taken to keep the Views expressed here unbiased.

For Detailed Follow up and Consistent trading Signals please consult the Adviser for his Paid Subscription Services. For Limited Free Advisory Services Follow our Telegram Channel 
https://t.me/fxmagician2016 

  

No comments:

Post a Comment