Looks like Cable is ready for another bullish run!
As mentioned last week, I was looking at GBP/USD’s possible Fibonacci retracement bounce that happened to fall near the top of a broken rising channel. Luckily, Cable is finally showing early signs of a bullish momentum.
To get you up to speed, I’m planning to take advantage of the BOE’s hawkish remarks and optimism over Brexit negotiations.
I’m also buying the pound against the dollar simply because market players can’t seem to sell enough Greenbacks these past few days. And unless we see a market-moving catalyst, it’s likely that the scrilla will continue to slide against its major counterparts.
With the daily chart popping up its first green shoots around the Fib areas, I’ve decided to:
Risk 0.50% of my account at 1.3880 and place my stop loss at 1.3675 and my initial profit target at 1.4275.
This should give me a reward-to-risk ratio of about 2.41:1, which isn’t half bad for a trend trade.
What do you think? Will the pound go back up to retest its previous highs? Or will the dollar bulls jump in and drag Cable back to its channel?
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