It’s not that the GBPUSD is my favorite currency pair, but there are times to trade each one of them.
And right now, the GBPUSD is one of the clearest currency pairs to trade from them all.
Imagine you have the perfect entry system, you’ve got perfect timing, but if you are trading the wrong currency pair, sooner or later the market will move against you.
Now, picture the other scenario, you’ve got a very simple system (let’s say a MA crossover system), if you pick the right currency pair to trade, who knows, you might get lucky and the market might move in your favor.
Any thoughts about this?
Anyway, you’ll see what I mean by a clear market condition here.
GBPUSD long term analysis
Take a look at this chart:
You see what I mean?
It’s got clear S&R levels, and what’s best of all, it’s actually reacting to those levels.
Now, you know how the market works, it goes from one level to the other, since it was rejected from the bottom of the range, it is likely to continue its way up, at least until it reaches the next LT resistance level which is at 1.5720.
And do you know where the market is currency trading at?
So we’ve got around 500 pips before we hit that level… what do you think? enough for you?
Alright, now let’s take a look at the short term charts…
GBPUSD short term analysis
Right now I’d be expecting the market to retrace to the ST support level around 1.5300, which is a pretty strong short term support level (plus a psychological century number).
If the GBPUSD retraces back to that level, and gives me something significant with upward pressure, I’ll be going long.
What do you think about my GBPUSD Analysis?
Which one is your favorite currency pair to trade? Why?
Let me know in the comment section.