GBPUSD had a strong Bullish run on the Daily chart. The H4 chart shows that the price has been trying to come down. The first H4 candle today came out as a strong Bullish candle, but the next one came out as a Bearish reversal. If the current candle ends up being an Engulfing Bearish Candle, then we might get a short opportunity on the pair later today.
Have a look at the chart. The level of 1.41255 has been working as a level of Resistance here. It has already produced an H4 Bearish reversal candle. The current candle seems that it would come out as a Bearish Engulfing candle. If the current H4 candle makes a breakout at 1.40925, then we would have to wait for an H1 Bearish candle right at the breakout level to take the short entry. Let us have a look at the summary of the trade…
- Sell Stop Order: 1.40925
- Stop Loss: 1.41255
- Take Profit: 1.39825
- Validity: 72 hours
- Whenever possible, move the stop loss to the entry price and whenever you want, you can take profit anytime as long as you feel comfortable
The USD has a High impact news event today at GMT 13.30. I assume the selling signal would be a good signal to take if it comes after that High impact news event. The GBP has a Medium impact news event at GMT13.00. This news event might not put that much effect. However, let’s hope that it does not create long spikes on the intraday charts. Sometimes these kinds of news events create long spikes on the intraday charts and ruin a good trade setup.
GBPUSD Price Action Analysis – 23rd Mar 2018
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