Daily Currency Report - GBP/USD


Weekly Trend direction: Bullish

Weekly trend reversal level: 2.0080

Key G7 Support levels: 2.0280, 2.0200

Counter-trend opportunities: None

Strategy: Whilst above the weekly trend reversal level, buy dips to support levels after an entry signal.

Today's trade suggestion: Terribly boring as we consolidate around the 2.0400/2.0450 mark, waiting for the next round of dollar weakness. Weekly momentum has turned clearly bullish and this means we shall watch for dips to buy. Allow for some retracement to above mentioned support levels before buying, with tight stops and a target of circa 2.0600. Remember once again that the pound is at/near multi-decade highs, and this will cause volatile swings in both directions, and probably a sudden collapse later in the month as traders realise that we cannot go much higher. Aggressive traders might try counter-trend shorts between 2.0500 and 2.0600, but only on clear signs of reversal.

Summary: No change: BUY dips to 2.0280/2.0200, target 2.0500/2.0600. Aggressive traders might try selling on signs of topping while below 2.0650.

GBP/USD Hourly Chart:

Forex618 Trading Signals

GBP/USD Weekly Chart:

Forex618 Trading Signals

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