Short term Bullish trade on GBP USD

قبل ٤ أيام

GBPUSD broke crucial support level at around 1.2507 on 2nd Jan and had a steep fall with a new interim low of 1.2355 (~150 points). This is a very steep fall in a single day and it took out a few long term support lines. My sense is that GBP USD will make a upward dash now either because (i) to allow a lot of sellers who missed the selling opportunity to be able to participate in this downward rally or (ii) a new low has now been formed and now GBP can only go up in the short term.

I am expecting GBP to touch 1.2507 in next couple of days. Currently there is a short term resistance line at around 1.2410. Once that is broken and retested, I will go Long with a stoploss around 1.2388 (~22 points) with a target of 1.2507 (~97 points). This is a good trade with RR of nearly 1:5.