GBP/USD Bearish Butterfly Pattern
A medium term shorting opportunity for GBP/USD.
Pricehas been rejected at the 1.43455 and 1.43766 level,
thus forminga double top. Yesterday's nose dive found support
at the 10 SMA (Blue line), however, a look at the Stochastics
indicates that this pair is currently overbought and regardless
of the economic data to be released shortly, a medium term
correction to the downside seems inevitable, at least from
a technical point of view.
Also, the previous level of resistance at 1.3657 is yet to be
tested after price broke through it. Beware of high
volatility in this pair as next month there is the possibility
of a rate hike.
Trade 1 (RvR ratio 2:1)
Entry: Close below 1.41732
S/L: 1.42771
T/P 1: 1.41225
T/P 2: 1.40534
T/P 3: 1.39654
Trade 2 (RvR ratio 2:1)
Entry: Close below 1.39654
S/L: 1.40922
T/P 1: 1.38409 (78.6 % of AD)
T/P 2: 1.37117
As always, adjust your stop/loss once in profit after
reaching the designated target levels.
Happy trading
A medium term shorting opportunity for GBP/USD.
Pricehas been rejected at the 1.43455 and 1.43766 level,
thus forminga double top. Yesterday's nose dive found support
at the 10 SMA (Blue line), however, a look at the Stochastics
indicates that this pair is currently overbought and regardless
of the economic data to be released shortly, a medium term
correction to the downside seems inevitable, at least from
a technical point of view.
Also, the previous level of resistance at 1.3657 is yet to be
tested after price broke through it. Beware of high
volatility in this pair as next month there is the possibility
of a rate hike.
Trade 1 (RvR ratio 2:1)
Entry: Close below 1.41732
S/L: 1.42771
T/P 1: 1.41225
T/P 2: 1.40534
T/P 3: 1.39654
Trade 2 (RvR ratio 2:1)
Entry: Close below 1.39654
S/L: 1.40922
T/P 1: 1.38409 (78.6 % of AD)
T/P 2: 1.37117
As always, adjust your stop/loss once in profit after
reaching the designated target levels.
Happy trading