Chart Created Using FXCM Marketscope 2.0
Technical Outlook
GBPUSD Correction Underway- Broader bias remains weighted to the Downside
Break above resistance region at 1.5265- 1.5280 puts bullish interim scalp bias
Primary objective region 1.5290-1.5435
Longer-term outlook remains bearish below 1.5577 (Confluence 50% Retrace & 200DMA)
Key Support region now 1.5265- 1.5280 (Fib Confluence with 100 & 50 DMAs)
Daily RSI still some further upside before encountering TL resistance dating June high
Key Events Ahead: 2Q GDP on Thursday
GBPUSD Scalp Chart
Scalp Notes: Although our longer-term bias remains weighted to the downside, we are looking for a new high to offer favorable short entries. Near-term scalp bias is bullish into 1.5392- 1.5435. A break above this mark risks further losses with such a scenario eyeing a key resistance range between 1.5550- 1.5576 (broader bearish invalidation) As opening range for the week is being put in our focus will shift lower with a break below 1.5260. A close below this mark offers further conviction on short scalps into subsequent support targets. Note that intra-day RSI remains in overbought territory and we will wait for the signature to reset to offer triggers on our subsequent scalps. Watch out for major event risk on Thursday with the 2Q GDP expected to expand another 0.6% q/q (up from 0.3% the previous quarter).Bottom line: looking for a new high to establish short positions as the pair continues to hold within the confines of an ascending channel formation dating back to the July 16th low.
* 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
1.5392-1.5435
38.2% & 61.8% Retraces / 100% Fib Ext
Break Target 1
30min
1.5490
Soft Resistance / Pivot
Break Target 2
30min
1.5530
123.6% Fib Ext / Soft Resistance / Pivot
Break Target 3
Daily / 30min
1.5550-1.5575
50% & 78.6% Retraces / 200DMA (1.5580)
Support Target 1
30min
1.5348
78.6% Fib Extensions
Bullish Invalidation
Daily / 30min
1.5265-1.5280
61.8% Ext / 50% Retrace / 50 & 100DMAs
Break Target 1
30min
1.5230
50% Fib Extension
Break Target 2
30min
1.5170- 1.5183
38.2% Retrace & 38.2% Fib Ext
Break Target 3
30min
1.5123
23.6% Fibonacci Extension
Break Target 4
30min
1.5080
Soft Support / Pivot
Break Target 5
Daily / 30min
1.5033
23.6% Fib Retracement
Average True Range
Daily
152
Profit Targets 34-37pips
Other Scalp Setups in Play- USDCHF Scalp Targets New Low- Short Bias at Risk Above 9360
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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