Sell GBPUSD at UK Recession

The GBP/USD pair on the H4 timeframe exhibits a potential selling opportunity due to a recent downward breakout from a symmetrical triangle pattern. This pattern suggests a period of consolidation followed by a potential trend continuation in the breakout direction.

Key Points:

Triangle Breakout: The price has been confined within a symmetrical triangle, characterized by converging support and resistance lines. This often indicates indecision before a decisive move. However, the recent break below the lower support line at 1.2600 signifies a shift in momentum towards the downside.

Sell Entry: Consider entering a short position around the current price of 1.2630, positioned close to the breakout level. This offers an entry point near the perceived shift in momentum.

Target Levels: Initial bearish targets lie at the support level of 1.2350, marking a previous support zone within the triangle. Further downside targets could be determined using other technical analysis methods like Fibonacci retracements or extensions.

Stop-Loss: To manage risk, place a stop-loss order above the broken support line of the triangle, ideally around 1.2750. This helps limit potential losses if the price reverses and breaks back upwards.

Thank you

تم فتح الصفقة:

Geopolitical Tensions: Any escalation in ongoing geopolitical tensions could trigger risk aversion and drive investors toward the safe-haven US Dollar, putting further pressure on GBP/USD.

Upcoming Flash Eurozone PMI: Scheduled for release later, this data could impact the Euro, which has a strong correlation with the Pound. A weaker Euro reading could drag GBP/USD down further.

تعليق:

تعليق:

Price Consolidation around Resistance Zone Now