Early in the morning of May 19th, I posted a trade recommendation here of going LONG on the GBP/USD and that the GBP/USD was forming a bottom. It was a 175 PIP trade shown here. You’re probably wondering how I knew that…how after weeks of the GBP/USD just dropping, I dared to take a LONG on the GBP/USD. It’s because there is nowhere else in the world you will find this kind of trading strategy which produces signals like this…period.

So, you might be asking yourself, “Self, where is the GBP/USD going now?” Well, the GBP/USD is currently still moving up; however, that could most definitely change. The GBP/USD is at a point where it could go either way.

Here are some things to consider:

• If you exited your short positions and took my long position posted a couple of days ago, then move your stops up so that if it breaks to go down, then you have captured profit.
• If you are still in your short positions, be sure to place your stops appropriately.

Here are a few things regarding technical analysis of the recent GBP/USD movement:

• It has retraced to the 1.4429 area and is potentially ready to resume its downtrend. That’s why, if you’ve noticed, the RSI has posted several weakened points as the 1hr. has continued to post higher highs.
• The GBP/USD has failed to take out 1.4516. This is of utmost importance if the GBP/USD is going to keep moving up. We’ll wait and see what my strategy provides as signals, but personally, if the GBP/USD doesn’t take out 1.4516, I don’t see how it’s going to continue its move upward. Rather, it would continue its downtrend.

It’s 7:34pm Central time (3:34am GMT). The GBP/USD is at 1.4434. Here’s what I see the GBP/USD doing in the short term:

• Since the GBP/USD failed to take out 1.4496, the GBP/USD should fall to 1.4405.
• When the GBP/USD hits 1.4405, that is another level to go long for the short-term. (This is assuming my strategy doesn’t create any short-term signals to go short when it hits this level.)
• At that point, we’ll see what happens. Once it hits that level, it may continue upward and take out 1.4496, then 1.4516. Otherwise, it may begin its descent again.

I’ll check everything again before I go to sleep and send out a post if anything changes. Otherwise, we’re still looking LONG on the GBP/USD. I’ll also check the GBP/USD status in the morning to see if anything has changed.

Happy trading!

LattePIPs