If you are looking for something to trade, trade the GBPUSD

Pound Dollar

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:

GBPUSD Long term analysis

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?

1.5325

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

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.

Your turn

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.

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Raul Lopez

I've been trading the markets for more than 15 years. I believe the best way to trade is by adapting to the market conditions. You can learn it too, join our community .

  • Craig Hantke

    And there you have it! Looks like it is nearing the target in your chart above. I actually exited waaay to early and didn’t get back in again. Great job Raul! It looks too easy in hindsight…

    • Raul Lopez

      Hello Craig,

      I know Craig… it took for ever to reach that level.

      I did the same thing, I got out earlier, the market was just too slow for me the last couple of days…

      Everyone is an expert trading the left hand side of the chart :) The difficult part is the right hand side…

  • Angel Tee

    Raul, I am already long exactly 1 week ago at 1.5221.
    Cheers!

    • Raul Lopez

      Good one Angel… are you still holding your trade?

      • Angel Tee

        Yes, still holding now.

  • Craig Hantke

    Looks like its already on its way up.

    • Raul Lopez

      looks like it Craig… did you get in?

      • Craig Hantke

        I’m in yup, we’ll see where it takes us ;)

        • Raul Lopez

          Welcome aboard!

          • Craig Hantke

            Maybe time to get in again, at a discount. Could break bearish also…

          • Raul Lopez

            Hello Craig, where did you have your SL levels at? Did you reenter?

          • Craig Hantke

            I re-entered but closed them both out too early. Still, its profit ;)