The GBP/USD pair on the M30 timeframe presents a potential selling opportunity due to a recent downward breakout from a well-defined Bearish Flag pattern. This suggests a shift in momentum towards the downside in the coming Hours.
Key Points:
Sell Entry: Consider entering a short position around the current price of 1.2710, positioned close to the breakout level. This offers an entry point near the perceived shift in momentum.
Target Levels: 1st Support – 1.2665 2nd Support – 1.2640
Stop-Loss: To manage risk, place a stop-loss order above 1.2760. This helps limit potential losses if the price unexpectedly reverses and breaks back upwards.
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Comment
Weak UK Economy: The UK economy faces headwinds, with concerns about a potential recession. Weaker than expected data or negative news regarding the UK economy could further weaken the Pound.
Dovish BoE Stance: The Bank of England (BoE) is expected to maintain a dovish stance on interest rates, keeping them low. This could make holding GBP less attractive compared to currencies with potentially rising interest rates, weakening the Pound.
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