GBP/USD 24 Jan 2020

Technical analysis, support and trend. 

Figure 1. GBPUSD Horizontal support.

As we can see from the 4 hour GBP/USD chart, price broke upwards from the bullish pennant at the beginning of December, creating higher highs. Since then the bulls have been looking for an ideal entry in the 1.29-1.30 area before trying to move upward. As confluence, price has broken the downtrend resistance over the past month and used it as support within the 1.29-1.30 zone and then began creating higher highs.

Figure 2. GBPUSD Upward Trendline 

A long term trade idea would be to buy between 1.30-1.305 with a stop/loss below 1.29 or below the uptrend in figure 2 if less risk averse with the first take profit at 1.327 and the second at 1.35. GBP/USD has been up trending since October so if we were to see a break of the figure 2 trend line we would expect price to become bearish and fall back to the 1.29 area.

 *Charts are created with TradingView, our partner in charting.
Written by Dan Randall, Technical Analyst.
Risk Warning: Trading on the Financial Markets, Stock Exchange and all its asset derivatives is highly speculative and may not be suitable for all investors. Only invest with money you can afford to lose and ensure that you fully understand the risks involved. Please remember that past performance may not be indicative of future results. Supplied information is not an advice .
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