Pick of the Day: GBP/USD

PCPOD.ff.png

Cable has risen for the ninth day in row against the Greenback, and with the pair touching a monthly high at 1.9549, there may be a great opportunity to short the overbought pair and get into a possible USD correction. If the pair breaks and sustains above the previous monthly high, then we may see the pair rally to the R2 pivot point line.

We have a few major news reports that may help push our trade later today, starting with GBP Consumer confidence at 5:30 am EST. At the beginning of the US trading session we have a pair of potentially market moving US data including PCE Price Index at 8:30 am EST and the Chicago PMI number at 10:00 am EST. Here are a couple of trade ideas:

Long GBP/USD at 1.9570, stop at 1.9540, pt1 at 1.9590, pt2 at 1.9620

or

Short GBP/USD at 1.9500, stop at 1.9530, pt1 at 1.9460, pt2 at 1.9420

Good luck and good trading!