2:15 AM (EST) Update: GBPUSD Bullish towards 50% Fibonacci at 1.6188. Remaining above the Ichimoku Cloud, the pair faced a pullback below the 38% Fibonacci level.
Forex Trading Idea
GBP/USD pulled below the 38% Fibonacci . If you were following my previous signals, you should already have entered a bullish position towards 50% Fibo resistance level. If not, don’t worry, this is a perfect opportunity to get in the position. If you are already in a bullish position, stay tight as this pullback could be temporary.
GBPUSD Bullish – Fundamental Points
Mr. British Pound has been on fire after the overwhelmingly positive UK general elections results. This has been so good that even the worse than expected data and the fact that BoE has cut its estimates for growth this year 2.5% from 2.9% didn’t really affect the overall new uptrend in the pair.
With this, minor setbacks are normal for some short-term profit taking among weak speculators only in the market as a result of the general election results. We have the UK retails sales at the London market open which is expected to come in better than last month. If all goes as expected, we could see more up moves in the British Pound crosses.
Technical Analysis: On the forex dance floor, the pair remains above the Ichimoku Cloud, facing a pullback below the 38% Fibonacci level . The RSI is heading up towards the oversold zone and the pair is back to the middle of the Bollinger Bands so we could see the pair shooting back up.
Alternative Scenario: If the pair suddenly goes nuts and break below 1.5220 look for a reversal targeting 1.51 and 1.50 in extension.
Where to set your stops and limits:
|Support Levels||Turning Point||Resistance Levels|