Looking at the previous 4 weeks, GBPUSD has ben finding difficulty breaking past the 1.28000 area. With last weeks indecisive doji close, it gives me more confirmation that we can see price in the short-term reach 1.25000 area. However my overall medium term bias is still to the upside. On the higher timeframe, we can clearly see GBPUSD is in a state of correction meaning we need to adapt our plan to trade within a range of price. 1.28000 as the height of the range and 1.25000 as the depth of the range.
For the upcoming week, I am looking for Sell opportunities. I will be looking for any form of continuation pattern in the form of a bearish flag. On the H1 chart, we can clearly see an impulse move after the 1.27400 area was tagged. Next is to see a continuation pattern develop. Once I see that, my plan will be ready to be executed with a minimum of 20pip stoploss for a reduced risk entry.
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