Partner Center Find a Broker

Is it time for another GBP/USD bounce?


On the technical side the stars – okay maybe just the indicators – are lining up for a bounce. GBP/USD has hit support at the 1.6250 area near a previous resistance and a 50% Fib. Not only that, but Stochastic is almost in the oversold levels. Oh, and price is also near the 100 SMA!

Fundamentally I’m still betting on the strength of the U.K. economy. We might have seen a couple of mixed reports for the past few days but at the end of the day retail sales, employment, and GDP numbers are still healthy and the BOE is optimistic over the economy.

Since I’m trading the daily chart I’m not too shy to wait for a retest of 1.6250 before I enter a position. I learned my lesson from last week’s USD/JPY setup though, so a market entry is still on the table in case I see reversal candlesticks or if Stochastic starts to turn from the oversold region. I’ll probably enter at 1.6250, place a WATR stop, and aim for the previous highs.

What do you think of this setup? Any help would be much appreciated!



Follow me on
Follow me on Twitter
Like my page on Facebook
Read the risk disclosure!

This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.