GBPUSD Sellers Could Target Key Swing Lows
Mon 16th October 2023 : Daily Forex Price Action
Today we’re looking at Trading Setups in:
- GBPUSD (Primary Focus Pair)
- AUDUSD (Covered In Video)
- AUDCHF (Covered In Video)
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Our Interest (pending order)/Open Interest (live position)
Risk warning: Trading carries a high degree of risk. Read more here.
Cable (GBPUSD) is in focus for us today after the market reversed its bullish sentiment from last week.
Last week’s close was bearish below the key Weekly (W1) resistance of 1.2325.
This could see sellers target the key Weekly (W1) swing lows at 1.2050.
GBP is W2 on our trend traders table and USD is S2.
On the slate throughout today we do have speeches from Bank of England members which will impact the price of cable today, so we could trade this at a reduced risk.
Currently on the H1 chart, the price is below the 50 moving average, this tells us that the price is currently bearish.
If price can stay below this H1 50 moving average we can continue to look for short opportunities.
The H1 Stochastic Oscillator also shows a potential opportunity forming, if we can see the K line below the D line, and both below the 80 level, it shows us that bearish momentum is entering the market again.
Ideally, we want to be short from an area of resistance, the resistance is currently higher at 1.2200 – 1.2215 which are the previous H4 highs.
If price can reject one of these levels and form a bearish close below the 50 moving average we can look to short down to the key swing lows at 1.2050.
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Primary Focus Pair Chart:
Technical Observations:
- USD is S2 and GBP is W2 on the trend traders table.
- GBPUSD price is trading below the H1 50 moving average.
- Sellers could target the key swing lows of 1.2050.
09:00 GMT/BST Forex Strength Vs Weakness Tables:
