GBPUSD | H1 | Trade Idea
Updated
Looking into GBPUSD from an overall structural perspective we can see that we’re currently trading within a consolidation forming on our higher timeframes so currently our trading is focused more around the key areas within the consolidation while we wait for the market to choose an overall direction on a larger scale.
Now taking from the above statement we can see that as we further breakdown GBPUSD going into smaller timeframes we can see that the market has broken out of our rising wedge formed on our H1/H4 timeframes and also through our minor 1D uptrend, now given that breakout we can further take note of the potential QML forming on our H1 which would further add as confirming our potential sell order.
I’ll be looking to sell GBPUSD from 1.27273 upon the retest of our diagonal Support from the breakout of our lower timeframe rising wedge which will also be the completion of our “Right Shoulder” on our potential QML formation. Stops will be placed at 1.27677 (-40 pips) and my final Take Profit level being 1.25361(+191 pips) giving us a potential 1 : 4.7 risk reward ratio.
We should also take note of the potential Fundamental announcements that will be released throughout the course of this week which will have an impact on the overall USD value and also those that’ll be impacting the overall GBP value as there are some important announcements that’ll be made I.e interest rates.
NB: This analysis is comprised solely of my own personal opinions and my own person outlook/overview of the market and should not be taken as direct advice to either enter a buy/sell position within the outlined market, please confirm with your own analysis prior to taking any trading decisions based on the outlined analysis.
Now taking from the above statement we can see that as we further breakdown GBPUSD going into smaller timeframes we can see that the market has broken out of our rising wedge formed on our H1/H4 timeframes and also through our minor 1D uptrend, now given that breakout we can further take note of the potential QML forming on our H1 which would further add as confirming our potential sell order.
I’ll be looking to sell GBPUSD from 1.27273 upon the retest of our diagonal Support from the breakout of our lower timeframe rising wedge which will also be the completion of our “Right Shoulder” on our potential QML formation. Stops will be placed at 1.27677 (-40 pips) and my final Take Profit level being 1.25361(+191 pips) giving us a potential 1 : 4.7 risk reward ratio.
We should also take note of the potential Fundamental announcements that will be released throughout the course of this week which will have an impact on the overall USD value and also those that’ll be impacting the overall GBP value as there are some important announcements that’ll be made I.e interest rates.
NB: This analysis is comprised solely of my own personal opinions and my own person outlook/overview of the market and should not be taken as direct advice to either enter a buy/sell position within the outlined market, please confirm with your own analysis prior to taking any trading decisions based on the outlined analysis.
Trade closed: stop reached
My initial GBPUSD Trade got stopped out (-40 pips) which led me to review & update my analysis leading me to a re-entry based on the recent updated analysis I uploaded not so long ago.
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