Potential Short on the GBPUSD
- BoonHooi
- Dec 29, 2019
- 1 min read
Market Outlook and Analysis (2019 WW52)
Currency Pair: GBPUSD
GBPUSD D1 Chart – Resisted but held up by the Support Trend Line
Prime Minister Boris Johnson got a major boost by winning the 12th Dec election by a larger than expected majority. This ensures that Brexit will happen at the end of January 2020. The GBPUSD spiked on the election day and got resisted at the sell zone around 1.3320/80.
The next dead line will be at the end of 2020 where the UK and the EU has to formulate a trade agreement. This 11-month transition period would be critical; hence the risk of a No-Deal Exit is still a possibility.
GBPUSD H4 Chart – Currently at a Minor Sell Zone
On the H4 Chart, seems that we could currently be in a minor Sell Zone. Seeing how the price reacts to this level Is critical. Any reversal signs on the lower time frame would give us an opportunity to sell this pair, minimally a move towards the support TL (150pips move).
GBPUSD H1 Chart – Completed a Bearish Bat Pattern
The pair completed a Bearish Bat Pattern around the 1.3100 level. I will be watching this closely next week. Even though that next week will be a quiet trading week because of the New Years. If the pair reacts again at the 1.3100 level, it would be a good short.
Potential Short Term Trade
Short : 1.3100 Stop Loss : 1.3155 (-55pips)
Target 1 : 1.3035 (+65pips)
Target 2 : 1.2985 (+115 pips)
Let's monitor this pair closely in the next trading week.