Hi everyone. I have been discussing this current move up on the GBP/USD since May 19th. For those of you who took my recommendations here, you are currently positive over 200 PIPs.

What the GBP/USD has been doing for the past few hours has been moving up and down in 50 pip movements:

• it failed to take out a short-term level of resistance
• then fell back to a level of support
• then it took out a short-term level of resistance (1.4788)
• and is currently retracing to a level of support (1.4744)…actually, during this writing, it has already retraced to 1.4744.

Now that the GBP/USD has reached the 1.4744 area, we are immediately targeting 1.4915 during the next move up. If the shorter times break against our longer-term trade, I will let you know. If that happens within the next few hours (maybe next 4-8 hours), then the GBP/USD will fall down to 1.4495. If that does happen, we will want to exit our profits before it moves down to 1.4495.

If the current movements are not strong enough to push the GBP/USD up to our 1.5000 area, then it could definitely turn around and begin moving back down into the Daily downtrend. Either way, we can still make positive trades, I just want to state the possibilities. Before that happens, of course, I will let you know ahead of time as usual. The GBP/USD has already hit our first long-term target (1.4780) documented here. Sometimes this happens where the currency pair just isn’t strong enough to perform the full move of the retracement and goes back into the full move of the trend. I’m referring to the 4hr as the retracement move up within the current Daily downtrend. (You can read more about these terms here.)

Happy trading!

LattePIPs