Friday, May 15, 2020

Bullish Setup On GBPUSD

Marco Tosoni

FХ Strategist & Financial Commentator

After setting a new historical bottom around 1.15 area in mid-March, a strong bullish rally started, culminating with a double top formation nearby 1.2650 area. While during the first part of the month of May, a new bearish movement is going on with the quotes that are currently working around 1.2200 testing the previous bottom area set in April.

During yesterday’s session anyway, cable has tried a first bounce setting a daily hammer candle with a closure around 1.2220 area.

Looking at the RSI, we can detect a bullish signal and as we can see on the daily chart, this indicator was absolutely reliable during the last 6 months. The Average True Range is continually declining as we have seen during the last 6 weeks and it’s currently working around its typical levels.

The bullish setup would be activated in case of a breakout of yesterday’s tops at 1.2250, with a stop loss to be place at 1.2100 below the bottom of April, while the target price could be predicted around 1.2400 area, nearby the last weeks’ tops area.

As always I recommend to trade carefully and to plan at best every move. Don’t forget to subscribe to NBHM YouTube Channel to stay up to date with the financial markets! Have a good trading and see you for the next video.

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