The daily chart of the $GBPUSD shows a clear uptrend price finding resistance at the 1.55 level. 1.55 is a large quarter point and major half number. The hourly chart shows double top at today’s high of 1.5512. So this signals a possible correction. If we get a correction, it will be at this level (or not). What is clear, however: Any dips is an opportunity to buy.
I am watching 1.5439 for buying opportunity as it marks the 38.2% retracement of today’s move. Any price correction beyond 50% retracement at 1.5416 would be a big red flag of a reversal of the intraday trend back towards 1.5250 large quarter point. However, if price remains in tact and news tomorrow (BoE AND FOMC minutes) continues to support the up trend, then look for price to move beyond 1.5512 and towards the next large quarter point at 1.5750.
My game plan is to enter a limit buy order at 1.5450 with at target of 1.5625 and a stop with 1:5 risk reward ratio.
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UPDATE: I missed my entry by 3 PIPS and missed out on the second wave of this rally. Such great analysis so what did I do wrong?, you ask. Well, I’ll tell ya!: I forgot to account for the spread! LOL!
