GBPUSD Daily Chart
Chart Created Using FXCM Marketscope 2.0
Technical Outlook
Primary 1.54 Objective has now been achieved- Maintaining Bearish Bias below this mark
Channel break dating back to March further reinforces our directional bias
Secondary objectives now in view 1.5218 – 1.5265 (50% near-term / long-term retracements)
Break eyes key support 1.5127 (61.8% retracement of the mid-March rally)
Daily RSI now looks to test 40-threshold- Break suggests correction off March lows is complete
Breech above 1.5407-1.5423 range (on a close basis) risks a run on 1.5586
Main events to watch this week: Jobless Claims / Quarterly Inflation Report on Wednesday (Significant Event Risk)
GBPUSD Scalp Chart
Scalp Notes: Bottom Line: Staying bearish below 1.54 – RSI signature is clearly bearish since the Sunday open but looks a tad overdone here and a relief rally is likely to offer better short entries. Looking to sell rallies into our secondary objective- 1.5218 with a break below the 1.5186-96 range offering further conviction on our directional bias. Watch out for Wednesday’s employment report and the BoE’s updated forecast- likely to offer further clarity on the MPC’s stance and could impact near-term sterling price action.
*We will remain flexible with our bias with a break above 1.54 eyeing subsequent resistance targets. It’s extremely important to give added consideration regarding the timing of intra-day scalps with the opening ranges on a session & hourly basis offering further clarity on intra-day biases. Use this app to distinguish the various trade sessions.
Key Threshold Grid
Entry/Exit Targets
Timeframe
Level
Significance
Resistance Target 1
30min
1.5309
38.2% Retracement
Resistance Target 2
30min
1.5350
61.8% Retracement
Resistance Target 3
30min
1.5375
Soft Resistance / Pivot
Bearish Invalidation
30min / Daily
1.54-1.5407
50% & 38.2% Retracements
Break Target 1
30min
1.5449
38.2% Retracement
Break Target 2
30min
1.5475
Soft Resistance / Pivot
Break Target 3
30min
1.5508
23.6% Retracement
Break Target 4
30min
1.5550
Soft Resistance / Pivot
Break Target 5
Daily
1.5585
50% 2009 Retracement
Support Target 1
30min
1.5283
78.6% Retracement
Support Target 2
30min
1.5250
Soft Support / Pivot
Bullish Invalidation
Daily / 30min
1.5218
50% Retracement
Break Target 1
Daily / 30min
1.5186-1.5195
23.6% Retrace / March 23 Low
Break Target 2
30min
1.5155
Soft Support / Pivot
Break Target 3
30min
1.5127
61.8% Retracement
Average True Range
Daily
111
Profit Targets 25-27
Reviews today’s Scalp Webinar for further insights and current trade setups
For updates on this scalp and more setups follow him on Twitter @MBForex
—Written by Michael Boutros, Currency Strategist with DailyFX
To contact Michael email mboutros@dailyfx.com or Click Here to be added to his email distribution list
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