GBPUSD Sets Up For A Short As USD Strength Continues
Fri 8th September 2023 : Daily Currency Strength Analysis
Today we’re looking at Trading Setups in:
- GBPUSD (Primary Focus Pair)
- EURUSD (Covered In Video)
- AUDUSD (Covered In Video)
Our Interest (pending order)/Open Interest (live position)
| GBPUSD ( Sell Stop ) | Price | Pips +/- | R/R (Max/Min) |
|---|---|---|---|
| Entry Price | 1.2480 | ||
| Stop Loss (Min) | 1.2523 | -43 Pips | |
| Stop Loss (Max) | |||
| Profit 1 | 1.2400 | +80 Pips | 1 : 1.9 |
| Profit 2 | 1.2350 | +130 Pips | 1 : 3.0 |
Risk warning: Trading carries a high degree of risk. Read more here.
Today our proprietary live forex strength vs weakness tables showed us that the GBP is the weakest (W1) on our day traders tables, and the USD is the strongest currency (S1) on both tables.
We briefly featured GBPUSD in yesterday’s post, highlighting the potential for downside.
From a technical point of view, the daily (D1) chart shows us price is consecutively forming a bearish close.
On the hourly (H1) chart we can see the price tested the previous lows at 1.2500 and rejected at 8am with a large bearish candle.
This candle on the hourly (H1) chart also traded through a minor trendline support which formed from the lows of the 1pm candle on the hourly (H1) chart yesterday, 7th September.
Price also rejected the hourly (H1) 50 moving average (red line).
The stochastic oscillator (indicator at the bottom of the screen) also showed bearish momentum.
Sellers could be looking to target the key daily support levels of 1.2400 or 1.2350, which was the low formed on May 25th.
Technical Observations:
- GBP is W1 and USD is S1 on the day traders table.
- Price found resistance at 1.2500.
- Price is rejecting the hourly (H1) 50 moving average.
Todays 9am (BST) Forex Strength Vs Weakness Tables:
