GBPUSD setting up for 3-month short position
As you can see on the daily, GBPUSD has been in a good downtrend for the last six months, clearly respecting the upper line and finding support on the bottom. GBPUSD is currently under the monthly pivot of 1.24429, and has been for the past week and a half. S1 is at 1.2090. For the long term trade (now to march) I'm looking to see it test and bounce off of the trendline, and hope to enter around 1.2260, with SL just above the monthly pivot around 1.2460 and TP in the 1.1250 area. 1000 pips reward to 200 pips loss over three months. Should GBPUSD bounce off of S1, I would TP there around 1.2119 I will not enter, however, if the DXY and US10Y are not showing signs of a strong uptrend at that time. Purple line is intended entry area, yellow line shows S1 TP, orange is S2 TP, dark green is S3 TP, and the light green line is the intended TP. The red line above the blue trend shows SL.
Stochastic is near oversold levels, heading up, and squeeze momentum indicator looks to be heading upwards as well. This suggests that we are heading towards the top of the channel for another possible bounce.
Stochastic is near oversold levels, heading up, and squeeze momentum indicator looks to be heading upwards as well. This suggests that we are heading towards the top of the channel for another possible bounce.
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