FOREX Chart Of The Day: GBPUSD Key Levels
Are you looking to trade #GBPUSD?
Then you may want to watch these key levels before entering your position!
Watch the video to find out more…
Hi, and welcome to this Blueberry Markets video update with me, John Kibbler, Head Currency Analyst.
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In this video, we’re going to take a look at GBP/USD. I was asked to look at this on one of the YouTube comments, so I thought I’d cover it. I do like the potential for a reversal on the GB Pound in line with the US Dollar buying.
If we look at the weekly timeframe, which makes me want to sell this market, we have some divergence. If you can see here, the price is continuing to form higher highs. However, we are starting to see lower highs on our RSI Indicator. Typically, when we see things like that and see divergence beginning to come into the markets, we see a reversal, so that is a decent sign that we could see some further downside from there.
The second thing is that we’ve retested this structure here. I would like to have moved a little bit. But in the context of where all the other majors are at the moment, it looks like with this section, I don’t think we will see that reaction unless there’s something that can drive the markets forward going into this week for the US Dollar, but at the moment, it looks like we could see that US Dollar strength continue, even if it’s only in the short term.
I am looking for that nice little bearish candlestick in there on the Friday session. If we look at the four-hour session, the market is acting in this large consolidation pattern. There’s a vast area, up here, and the market continues to bounce off this trend line, with support going forward. I’m looking for an excellent breakout to the downside.
One thing I did like this morning was the opportunity, here. The market formed a bit of a double top pattern, broke to the downside, rally back up, retested that structure, nice bearish lower low lower close candle or an advanced engulfing candle, and now, we’re starting to see the market drop to the downside. I like the opportunity to get short on the GB Pound, but it is more in line with the US Dollar strength more than anything.
Now, two areas I’d love to do that is a break of these lows. If the price can break below these lows here, around 1.3630, if the price can break below these lows in there, confirm the breakout, then I’d happily look for retracement trade and a continuation at the point. That would also be a break of this trendline. If the market can break out of that trend line, break out those lows, We’ve got some movement, here, to look for the downside. But at the moment, the price is still making its way towards that move there.
At the daily timeframe, you can see that consolidation in a large scale view there, and you can see the consolidation at that point. Again, what I quite like about this is even on the daily timeframe, highs are getting higher. The RSI shows lower highs consecutively for these highs through there, showing us that the buyers are losing some steam here.
So, the opportunity to get short on the GB Pound would be at the end of the day closes or breaks in trend on four-hour timeframes.
I hope you enjoyed this video update, and I’ll speak to you soon.
Apply what you learned from this Forex Chart Of The Day in your future trades with the GBP/USD currency pair. The good news is you can test your winning strategy risk-free. Sign up for a free Blueberry Markets demo account by clicking here.