Chart Created Using FXCM Marketscope 2.0
Technical Outlook
GBPUSD Correction halts at primary objective resistance range 1.5395-1.5435
Broader outlook remains bearish sub-1.5550/77 (50% & 78.6% Retraces, 200DMA, TL Res)
Break below interim support range 1.5265-1.5280 offers warrants action on the short side
Daily RSI Trigger break to offer further conviction on bearish bias
Primary support target objectives 1.51701, 1.5012
Key Events Ahead: U.S. GDP and FOMC rate decision on Wednesday, BoE rate decision Thursday, NFPs on Friday
GBPUSD Scalp Chart
Scalp Notes: The cable breakdown seen since the start of the week has been quite compelling with the move sub 1.5280 putting our short scalps in play. Price action in the pound has been a near replica of what we saw ahead of the June FOMC meeting which was the onset of the major decline into the yearly low at 1.4812. With that said, it’s extremely important to note that a weaker than anticipated US GDP report and/or a lowering of the unemployment threshold from the FED could heavily weigh on the US Dollar and fuel a rather substantial rally in the GBPUSD. As long as the 1.5435 threshold is respected, we will maintain our bearish scalp bias.
Note that intra-day RSI looks to recover from oversold conditions with a run here likely to reset our downside trigger and offer favorable short entries higher up. With tomorrow marking the last day of July trade, we will remain very nimble as portfolio rebalancing could fuel some unforeseen volatility.
* 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.
Key Threshold Grid
Entry/Exit Targets
Timeframe
Level
Significance
Bearish Invalidation
Daily / 30min
1.5280- 1.5286
23.6% & 50% Retraces / 61.8% Fib Ext
Break Target 1
30min
1.5320
Soft Resistance / Pivot
Break Target 2
30min
1.5348
78.6% Fib Extension
Break Target 3
Daily / 30min
1.5392/96
61.8% Retrace / 38.2% Retrace
Break Target 4
Daily / 30min
1.5435
100% Fib Ext / July High (1.5433)
Support Target 1
30min
1.5230
50% Fibonacci Extension / Pivot
Bullish Invalidation
Daily / 30min
1.5196- 1.5170
38.2% Retracement(s)
Break Target 1
Daily / 30min
1.5123
50% Retracement
Break Target 2
30min
1.5080
Soft Support / Pivot
Break Target 3
30min
1.5050
61.8% & 23.6% Retracements
Break Target 4
Daily
1.4995- 1.5012
61.8% Fib Ext / 50% Fib Ext
Break Target 5
30min
1.4980
Soft Support / Pivot
Break Target 6
1.4945
78.6% Retracement
Average True Range
Daily
119
Profit Targets 26-29pips
Daily Scalp Setups in Play- USD, EUR & GBP Scalp Bias at Risk Ahead of FOMC, ECB, BoE, NFP
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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