GBPUSD Watch This Before Selling

Mon 6th February 2023 : Daily Currency Strength Analysis

In Today’s Video we’re looking at Trading Setups in:

• GBPUSD
• AUDUSD

GBPUSD Watch This Before Selling

In today’s currency strength video we identified that the United States Dollar (USD) tops both of the forex indicator tables. 

This follows on from the momentum on Friday where the USD strength burst into the market after the Non-Farm Payrolls (NFP) number.

The GBPUSD fell over 400 pips last week and is featured on the tables today with GBP being the 3rd weakest currency on the day traders table.

Price rejected the 1.2400 level forming a double top pattern on the weekly time frame.

If the price is going to complete the pattern we would need the price to trade through the neckline lows at 1.1850.

Waiting for the price to trade higher first will be the safest option for a trade lower. 

A rejection of the resistance levels of 1.2100 or 1.2200 would provide a positive reward to risk ratio.

Technical Observations

• The USD is S1 and GBP is W3 on the day traders table.
• Price looks to be forming a double top pattern on the weekly time frame.
• The price rejected the key 1.2400 level.
• Neckline of the double top pattern in 1.1850.
• The lower time frame needs to form a retracement move before looking for selling opportunities.
• Key resistance is at 1.2100 and 1.2200.