Tuesday, February 10, 2015

New Signal GBP/USD



As of 02/10/2015 @ 7:42 EST:

We have identified GBP/USD as a potential long trade.  Although the Global Currency Scalper does not normally like to take a trade against the long-term trend this pair is making a compelling case for a short-term move higher.  Since the sell-off from last August the GBP/USD has been moving sideways for the past month and hasn't made a real threat to break the 23.6% Fibonacci retracement level.  The most recent sideways action from 1.51600 to 1.53500 looks like short-term liquidation into a bullish base.  If the 1.51600 level can hold the recent base should be confirmed and a move higher should be in the cards.

The Global Currency Scalper will be taking a long position in GBP/USD with a break of 1.52850 with targets of 1.53500, then the figure (and also the 23.6% Fibonacci level) of 1.54000, higher could see 1.54780.  We will place a stop with a break of 1.51550, if this pair trades through this level prior to initiating a position our view will turn neutral and further evaluation will be needed.

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