GBP/USD – The Cable Pair May See a Possible Breakout Above $1.2150
Risk per trade is 0.75% and trades must be taken prior to 5 PM GMTtoday.
Bullish View
- Wait for a bullish price action reversal H1 timeframe and place trades once price reaches $1.2071, $1.2059, or $1.1958.
- Stop loss – 1 pip below the local swing low
- Adjust stop loss to breakeven once the trade is at profit by 25 pips.
- Take profit by removing 50% of trade.
- Let the trade run.
Bearish View
- Wait for a bearish price action reversal on H1 timeframe and place trades once price reaches $1.2148, $1.2264, or $1.2290.
- Stop loss – 1 pip above the local swing high
- Adjust stop loss to breakeven once the trade is in profit by 25 pips.
- Take profit by removing 50% of trade.
- Let the trade run.
Yesterday, we saw the cable pair remaining strong despite the strong US Dollar. But the times ahead may become tough for bulls owing to the risk-off sentiment having a hold on the market. Waiting for a breakout would be a good idea at the moment as the range appears to be well-defined and narrow. The charts displayed a pivot point at the resistance at $1.2148 and the price was seen sitting in the middle of 2 close support levels starting at $1.2071.
The outlook will be pretty bullish in case we see 2 hourly closes above $1.2150, happening one after one. But considering the opposite case scenario, there are chances that the price may drop to $1.2000 which can be anticipated once the price falls below $1.2058. Still, that would be a difficult trade to execute as the analysis is hinting at a possible bullish breakout which needs to be captured with a long trade. There is no important data release concerning GBP except the FOMC minutes scheduled today which can affect USD.
