GBPUSD Daily Chart
Chart Created Using FXCM Marketscope 2.0
Technical Outlook
1.54 Objective cited last month has now been achieved
Broader bias now aligns with the near-term as we look to play the rebound off this key threshold. (Note: breach on a daily close basis invalidates our initial bearish scalp bias)
RSI holding 60-threshold- suggests broader bias remains intact / near-term top may be in place
RSI trigger break to confirm the directional bias
Key support region 1.5188-1.5265- Break below offers further conviction on subsequent short scalps
Main events to watch this week: CPI/PPI on Tuesday – BoE minutes & Jobless claims on Wednesday – UK Retail Sales on Thursday
GBPUSD Scalp Chart
Scalp Notes: Bottom Line: 1.54 is Paramount- Topside break on a close basis risks further advances into our resistance targets. The RSI signature since the Sunday open remains bearish with only a breach above the 60-threshold suggesting that the recent decline may have run its course. Watch for contentious price action as we head into the 1.5243-1.5274 range – 1.5240 has been a key pivot for the pair dating back to February.
*We will remain flexible with our bias with a breach above 1.5410 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
1.5340
Soft/Pivot Resistance
Resistance Target 2
30min
1.5365
78.6% Fib Ext
Bearish Invalidation
Daily
1.5407
38.2% Retracement
Break Target 1
30min
1.5455
100% Fib Ext
Break Target 3
Daily
1.5500
Big Figure1
Break Target 4
Daily
1.5520
R2 Monthly Pivot
Break Target 5
Daily
1.5585
50% Retracement
Support Target 1
30min
1.5293
61.8% Fib Ext
Support Target 2
30min
1.5273
23.6% Retracement
Support Target 3
30min
1.5243
50% Fib Ext
Support Target 4
30min
1.5215
Soft Support
Bullish Invalidation
Daily/30min
1.5188
23.6% / 38.2% Retrace
Break Target 1
30min
1.5160
Soft Support
Break Target 2
30min
1.5130/1.5120
23.6% Ext /50% Retrace
Break Target 3
Daily
1.5095
Monthly Pivot
Average True Range
Daily
102
Profit Targets 23-25pips
For updates on this scalp and more setups attend Michael’s Scalp Webinars or follow him on Twitter @MBForex
Reviews today’s Scalp Webinar for further insights and current trade setups
—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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Source: Daily fx