GBPUSD Daily Chart
Chart Created Using FXCM Marketscope 2.0
Technical Outlook
Rebound off the 1.54 Objective cited last week has continued to play out with precision
Broader bias remains weighted to the downside- But may see limited declines on a move into key support confluence in the near-term
Looking for extremely nimble intra-day longs, with rallies offering favorable short entries sub-1.54
Break below key support 1.5188 (23.6% retracement, channel support) puts us back on track
Objectives 1.5092 (monthly pivot) & 1.5012 (61.8% long-term Fibonacci extension)
Breach above 1.5330 deemed neutral- Breach of 1.54 invalidates bearish bias
RSI Break below 40-threshold (on a close basis) offers further conviction on subsequent short scalps
Main events to watch this week: UK 1Q GDP on Thursday
GBPUSD Scalp Chart
Scalp Notes: Bottom Line: Need a break sub 1.5188 to get aggressive on the short side. The RSI signature since the Sunday open remains constructive in the near-term- Trigger break (depending on time) to put intra-day shorts in play. Watch for contentious price action at 1.5274/82 and into the 1.5188 threshold.
-Blue Retracement- Taken from Decline off 1.54
-Green Retracement- Taken from Advance off March low
*We will remain flexible with our bias with a break below 1.5188 eyeing subsequent support 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
1.5274 / 1.5282
23.6% & 38.2% Retraces
Resistance Target 2
30min
1.5307
38.2% Retracement
Bearish Invalidation
30min
1.5330
61.8% Retracement
Break Target 1
30min
1.5365
78.6% Retracement
Break Target 2
Daily / 30min
1.5407 / 1.5410
38.2% Retrce/April High
Break Target 3
Daily
1.5455
100% Ext Off March Low
Break Target 5
Daily
1.55 / 1.5520
Big Figure / R2 Monthly
Support Target 1
30min
1.5252
23.6% Retracement
Support Target 2
30min
1.5220
Soft Support / Pivot
Bullish Invalidation
Daily / 30min
1.5188 / 1.52
23.6% & 38.2% Retrces
Break Target 1
30min
1.5155
Soft Support / Pivot
Break Target 2
30min
1.5120 / 1.5130
50% Retrace / Pivot
Break Target 3
Daily
1.5090
Monthly Pivot
Break Target 4
30min
1.5055
61.8% Retracement
Break Target 5
30min
1.5032
April Low
Average True Range
Daily
113
Profit Target 25-27pips
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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