GBPUSD: Breakout Watch Above 1.3575 – Setup, Levels, and Trade Plan
Overview GBPUSD has carved out a constructive H1 structure after recovering from recent swing lows. Price is compressing just beneath a well‑defined resistance shelf at 1.3575–1.3600, forming a flat‑top/ascending consolidation. Repeated tests of the ceiling without deeper pullbacks suggest building upside pressure.
Structure: Flat‑top consolidation with higher lows = pressure building under resistance.
Liquidity: A push through 1.3575 likely runs stops and invites breakout flows toward 1.3655+.
Validation: SL sits below the last defended demand; a break beneath 1.3530 signals the range failed.
Confirmation Checklist
H1 close above 1.3575–1.3580 or a swift impulsive break with rising momentum.
Best timing historically: London open and London–New York overlap.
Data risk: Avoid initiating directly into tier‑1 releases to limit slippage/fakeouts.
Trade Management
If triggered and price holds 1.3575–1.3580 on a retest, consider:
Moving SL to breakeven once price sustains above 1.3590–1.3600.
Partial profit at 1.3625–1.3640 (intermediate reaction area), let the remainder run to 1.3663.
If price spikes above 1.3575 and closes the hour back inside the range, watch for a bull trap; a drop back under 1.3560 can unwind toward 1.3540.
Bearish Alternative
An H1 close below 1.3530 turns the current range into distribution.
Downside opens to 1.3500, then 1.3460–1.3475.
Invalidation for shorts: Reclaim and close back above ~1.3575.
Position Sizing Example
With a 38‑pip stop, risking 1% on a 10,000 USD account (~$100 risk):
$100 / 38 pips ≈ $2.63 per pip ≈ 0.26 standard lots on GBPUSD (1 lot ≈ $10/pip).
Adjust to your account size and risk tolerance.
Macro and Flow Considerations
USD side: Moves in US yields and the broad dollar index can cap or fuel breakouts.
GBP side: BoE guidance and UK CPI/wages prints influence direction.
Risk sentiment: Equities/credit tone; risk‑on generally supports GBP.
Event risk: UK CPI/GDP/labor, US CPI/PCE/NFP/Fed speakers. Plan entries around these to reduce volatility surprises.
Bottom Line The bias is constructive while 1.3530–1.3540 holds. A clean H1 breakout above 1.3575 favors continuation into 1.3655–1.3670. The outlined setup offers attractive risk–reward if momentum confirms—manage actively on a successful retest and stay disciplined if the breakout falters.
Recommended Lot Size
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