GBP/USD (Swing Forecast)
Sell if GBP/USD breaks below 1.5459, stop at 1.5516, target at 1.5405. See full report for more details
The GBP/USD has primarily consolidated so far this week, with a brief foray above the 1.5500 round handle being quickly sold off by the bears. The price rejection at 1.5500 has created a Bearish Pin Candle on the 4hr chart, indicating strong selling pressure at 1.5500 and foreshadowing a potential move lower over the course of today’s trade. At this point, a break through Friday’s low would likely lead to a continuation down to support at the 1.5400 round handle.
To take advantage of this setup, traders could set a stop sell order at 1.5459 (under Friday’s low) with a stop at 1.5516 (above the weekly high and 1.5500 round handle) and a target at 1.5405 (just ahead of the 1.5400 round handle and Monthly S1 pivot). This trade idea would be invalidated by a rally above 1.5516 prior to entry, or if not triggered by the end of today’s North American session (17:00 Eastern, 21:00 GMT).