GBPUSD Daily Chart
Chart Created Using FXCM Marketscope 2.0
Technical Outlook
Topside objective noted last week at 1.5586 has triggered- Bias remains bearish below this mark
Primary objective 1.5407 (38.2% retrace of 2013 range & 23.6% retrace of advance off March low)
Key Resistance1.5586 (50% Retrace of 2013 range) – Breech threatens 1.5680
Opening range for April puts a bearish tone for the month
Decline off the yearly high points to a 2 1/2 month cycle- brings into focus May 16th calendar date- May opening range to offer clarity on medium-term biases
Short Scalps have been in play since Friday with rallies offering favorable short entries sub-1.5586
RSI trendline trigger break to offer conviction on short scalps
Break below 1.5407 (on a close basis) offers conviction on short scalps- Secondary Objective range between 1.5188-1.5265.
Main events to watch this week: BOE interest rate decision and Industrial/Manufacturing Production on Thursday
GBPUSD Scalp Chart
Scalp Notes: Bottom Line: The conviction rejection off 1.5586 (four failed attempts) has put our short scalps in play. The 30min RSI signature has been bearish since the last attempt at a topside breech at the start of the week- Selling rallies into primary objective at 1.54-1.5407. Break below this mark targets a move back into the key support region noted last week at 1.5188-1.5265.
*We will remain flexible with our bias with a break above 1.5586 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
1.5550
Soft Resistance / Pivot
Bearish Invalidation
Daily
1.5585
50% Retracement
Break Target 1
30min
1.5630
Soft Resistance / Pivot
Break Target 2
30min
1.5650
78.6% Fib Ext
Break Target 3
Daily
1.5680
38.2% 09′ Retrace
Break Target 5
Daily
1.5750/60
61.8% Retrace/200DMA
Support Target 1
30min
1.5509
23.6% Retracement
Support Target 3
30min
1.5475
Soft Support / Pivot
Support Target 2
30min
1.5449
38.2% Retracement
Bullish Invalidation
Daily / 30min
1.54 – 1.5407
38.2% & 50% Retraces
Break Target 1
30min
1.5375
Soft Support / Pivot
Break Target 2
30min
1.5350
61.8% Retracement
Break Target 3
30min
1.53 – 1.5310
Big Figure/ Soft Pivot
Break Target 4
30min
1.5280
78.6% Retracement
Average True Range
Daily
104
Profit Targets 23-25pips
For updates on this scalp and more setups attend Michael’s Scalp Webinars or 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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Source: Daily fx