Forex Marketz Daily Forex News – Fully Markets Update
GBP/USD (1.5518)
Some points to consider in this Forex market.
- Price action opens the door for a continued bullish up-trend.
- The pivot support at 1.55 was good place to enter a long Sterling trade. Trade executed.
- Trade Strategy: Long GBP at 1.55.
The GBP/USD Forex market has continued its uptrend as traders are being driven by rate expectations. This comes after the United Kingdom reported the strongest employment numbers in over six years. There has also been comments made my Monetary Policy Committee (MPC) members that a hike in interest rates can happen sooner than later. Since then the USD has found some strength but support at the 1.55 pivot has held. This opens the door, from a risk to reward perspective for a long trade.
Technical Analysis
Now let’s look at today’s GBP/USD technical analysis. Price action in this Forex market has put in a number of fresh higher lows and highers his ahead of last week’s FOMC rate decision. These new levels happened just below the 1.55 pivot with for top-side candles around 1.5434 to 1.5474. The Fed held off raising rates and the Sterling gapped higher. There is strong support showing around 1.55 and around the May low and the high price point for June. It is also a key psychological level.
Trade Strategy
The trade strategy for the GBP/USD market offers an attractive long position, from a risk to reward position. Especially with this current technical setup. A stop loss can be placed at 1.5408 with an initial target at the key pivot at 1.5650. This the high price point from last week. The next target would be 1.5730 then the major pivot and three month high at 1.58.
