The GBP/USD’s uptrend continues to trend and has made a higher high as recently as March 2 on the daily chart when it hit 1.6343. The uptrend – confirmed by the “twelve to two o’clock” angle of the 34EMA Wave coupled with steady support on recent pullbacks to the Wave all mean that despite the selling resistance overhead and nearby, there is another swing buy triggering.
The daily GBP/USD with my 34EMA Wave and GRaB plug-in for MT4
By the way, I have started a Baby Pips Forum thread here to discuss these two tools and the many ways in which I use them.
I will admit that the more toppy prices get, the riskier this swing entry becomes, therefore I am being more aggressive about my stop-loss placement in case sentiment begins to shift lower, especially with the MPC Rate Statement coming Thursday. The Official Bank Rate is expected to remain at 0.50% If prices break lower through 1.6097, which is the middle line of the 34EMA Wave I will look to exit the swing buy that was triggered by a correction lower into the ara between the 20 period SMA and the 34 period EMA high.