Trade Plan (Pending): I am Buying GBP/USD at 1.2498
DXY (USD Index) - the index continued to move higher from Friday's low of 102.53. The next significant upside barrier is the 61.8% retracement level at 104.39.
GBP Basket - continues to move to the downside. Support is located at 1985 and 1984. A move to 1984 will complete a bullish Crab pattern.
Correlation studies suggest buying dips in sterling (GBP).
GBP/USD - the four-hour chart highlights GBP/USD breaking lower from the Wyckoff distribution zone. With bespoke support located at 1.2511 and 1.2497, this is seen as a liquidity-gathering spring with an eventual bias to move to the upside. We have the completion of a bullish Crab formation located at 1.2473.
Conclusion: although there is ample scope for further intraday losses, I look for dips to be bought. Setting long's (buying) between 1.2497 at 1.2473, looking for a move to the medium-term barrier of 1.2895 offers a favourable risk-reward.
I am buying GBP/USD at 1.2498
SL: 1.2448
TP1: 1.2890
Risk/Reward Ratio of 7.8R
GBP Basket - continues to move to the downside. Support is located at 1985 and 1984. A move to 1984 will complete a bullish Crab pattern.
Correlation studies suggest buying dips in sterling (GBP).
GBP/USD - the four-hour chart highlights GBP/USD breaking lower from the Wyckoff distribution zone. With bespoke support located at 1.2511 and 1.2497, this is seen as a liquidity-gathering spring with an eventual bias to move to the upside. We have the completion of a bullish Crab formation located at 1.2473.
Conclusion: although there is ample scope for further intraday losses, I look for dips to be bought. Setting long's (buying) between 1.2497 at 1.2473, looking for a move to the medium-term barrier of 1.2895 offers a favourable risk-reward.
I am buying GBP/USD at 1.2498
SL: 1.2448
TP1: 1.2890
Risk/Reward Ratio of 7.8R