GBP/USD SELL OFF!

Published date: 05/02/2019
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It seems like Theresa May’s visit to Belfast is already hurting the British Pound. The latest set of talks is expected to last two days. 

These talks were in hope of generating a Brexit backup plan for the current deadlock. 

Looking at the technicals, the GBP/USD weekly time frame peaked at 1.32100. This was due to the US government shutdown, which has recently weakened the US dollar. Price has since pulled back significantly and looks to be turning bearish. On the chart I’ve displayed the bullish trend line that broke a few days ago, causing the market to shift direction. Upon this price break, it continues to battle against our daily resistance at the 1.31000 level. 

Since viewing the 4-hour and 2-hour time frames last night, the price has returned back to its favourite magical number of 1.3000…that's right once again!!! It’s now time to watch closely to see if there is enough selling pressure to continue this fall. If we remain below 1.3000, downside targets will be 1.28500 based on the previous consolidation. 


Comments

  • GBP/USD SELL OFF!
    Gareth says:
    06/02/2019

    This setup looks very promising, managed to short and make a decent 139pips overnight. My target zone obviously was not as much as you have it, but still looks promising. Now to wait for the next setup. Ps I'm currently trading from my work desk

  • GBP/USD SELL OFF!
    Kamran Riaz says:
    05/02/2019

    Excellent article. As I read this article I’m currently on my charts looking at this trade. I too fully believe that gbp/usd will head towards 1.28500. Let’s wait and see...

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