Alright! Based upon the forecasts I gave everyone about 3 weeks ago on the GBP/USD, HOPEFULLY you took my trade recommendation and shorted the GBP/USD! Personally, I’ve made a little over 1000 PIPs on 1LOT on the GBP/USD within the past week. (This did include entering into another position as the GBP/USD fell, but I never entered 2 LOTs taking a single position.) As usual, I will post my monthly account results at the end of May.
So…whether you did or did not take my trade recommendation, you can still take profit. This GBP/USD move is at the beginning of its longer move. Therefore, the questions you may be asking yourself is:
- Self, now that I’ve shorted the GBP/USD, how long do I hold the position? Should I exit to capture what profit I have? Do I move a stop loss down in case it goes against me? etc.
- Self, I didn’t take LattePIPs’ recommendations, but want to take advantage of this move. Where do I get in and still mitigate my risk.
Well, here is some technical analysis of what I am seeing. I will try to update this to keep the analysis up with the current GBP/USD movement to provide potential profit targets and trade entrances.
Short-term:
- The 15min has fully retraced to the resistance level of 1.4769. In fact, it has gone up to 1.4823. Therefore, it is ready to resume the direction of the 1hr. What I would like to see is the GBP/USD take out the large support level of 1.4401. This needs to happen!
Longer-term:
If it doesn’t resume in the direction of the 1hr to take out 1.4401, then it could retrace all the way back to 1.5117, which I’m not really keen on that happening. The 30min seems to be holding in tact; therefore, hopefully, we’ll see our downtrend resume and the 1.4401 taken out.
Therefore…if you’re currently in your GBP/USD short trade, I recommend staying in.
-LattePIPs
LattePIPs 