The GBPUSD was rejected from the most important long term support level at 1.6156, this creates a bullish market condition. Please take a look at the next chart:
Remember the market condition is different from the market trend. In this chart for example, the general trend is a “range” 1.6654 – 1.6156, but the market condition is bullish because it has been rejected from the main support level. The market condition tells us the direction for the next hours/days.
My Trading Plan:
Look for long trading opportunities, all take profit levels will be placed below the next resistance level at 1.6654.
The GBPUSD traded for a while in an undefined range, very difficult to trade by the way, but earlier today, during the European session it broke the bottom of that range. Please take a look at the next chart.
Now, it will probably head to the next mayor support level around 1.6029.
Here is my trading plan:
I will look for short trading opportunities, will place my take profit level above the next long term support level around 1.6029.
As we mentioned in an earlier post, the GBPUSDwas getting ready to break either side of the range, and finally today the market broke the short term support level located at 1.6905. Please take a look at the next chart.
This breakout puts shorts in play. Remember however that tomorrow we have the most important announcement of them all, the non-farm payrolls report. It could be a mover because many investors and traders are expecting a recovery.
My Trading plan:
Will look for short trading opportunities. Next long term support level is around 1.6552.
The GBPUSD is trading just at an important long term resistance level around 1.6986. The thing is, the market is creating a short term range in between 1.6907 and 1.6988. Please take a look at the next chart:
We need to see a break of the short term range before we start looking for trading opportunities. Seeing the EURUSD already broke the top of the range, my bias would be long in the GBPUSD, but we can’t take decisions based on other currency pairs, we need to wait.
My trading plan:
If the market breaks the short term resistance level, I will start looking for long trading opportunities, the next long term resistance level is at 1.7477.
If the market breaks the short term support level, I will start looking for short trading opportunities, the next support level is at 1.6552.
The GBPUSD was rejected from the long term resistance zone around 1.6620, this makes me think the market will go short in search for the next support zone, located around 1.5914. Please take a look at the chat below:
My trading plan:
As long as the market continues to trade below 1.6327 I will look for short opportunities (already have one short). All take profit orders will be placed 40-50 pips above the main support zone.