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If you’re looking for a short-term trend opportunity on the pound or dollar, then this setup is for you!

As you know, I’ve been pretty bearish on the dollar lately. In fact, my last two trades, ones on USD/JPY and GBP/USD, have ended with wins because of this bias.

See, for the past few weeks concerns over the impact of the Fed’s tightening on the markets; Uncle Sam’s twin deficits, and Trump’s tough stance on global trade issues are REALLY messing with the bulls’ moves. Oh, and all the White House brouhaha isn’t helping either.

I don’t think the picture is much different for the dollar this week. The pound, meanwhile, seems to be getting a bit of support from the fact that there’s no explosive Brexit-related headlines over the past few days.

This is why I’m still bullish on Cable. And as you can see, I might have found a way to enter its short-term uptrend that has been solid since the start of the month.

GBP/USD 1-Hour Forex Chart
GBP/USD 1-Hour Forex Chart

The pair is now bouncing from the 1.3930 handle that marks last week’s highs. Not only that, but it’s also near the 100 SMA AND the mid-channel support on the chart!

What’s keeping me from buying this one is the tight lid around the 1.4000 major psychological handle. I’ll probably be on a wait-and-see mode until Cable breaks that ceiling.

Still, this particular setup looks soooo tempting right now. Think I should enter at market? Or should I wait for new highs before confirming the pound’s bullish direction?

See also:
My Q4 2017 Forex Trade Review and Reflections
Latest version of the HLHB Trend-Catcher System

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