Well, it looks like it’s all about Cable once again! We have UK Retail Sales as the big event for the European trading session. Market sentiment is that we will see a weaker read than previous at 0.3%, and with the run Cable has had over the past week, we may finally see the correction technical traders have been waiting for…but what if it surprises to the upside?
If it does break out to the upside we could possibly see a quick move to 2.06, then possibly a retracement on profit taking. A weaker number and we could begin to see a short term selloff, after which I will look for a long entry to jump in the longer term uptrend.
So, I am long bias looking to take a quick profit on an upside break, or to jump into a longer term trend on a downside break. Here it goes:
Long GBP/USD at 2.0565, stop at 2.0525, pt1 at 2.0585, pt2 at 2.0600
Long GBP/USD at 2.0460, stop at 2.0420, pt1 at 2.0480, pt2 at 2.0500
Remember to never risk more than 1% of your account on any single trade. Please adjust position sizes accordingly.
Good luck and good trading!