GBPUSD Trading Analysis

by: Colibri Trader

Dear all,

The trading analysis from last time did turn out as expected. The only difference being that price did not retrace as high as 133.500. On the other side, the 4 hour chart did give a couple of great entry opportunities.

First opportunity for me was when it formed a bearish engulfing pattern right here:

GBPUSD Trading Analysis

I have marked with an orange arrow the first bearish engulfing pattern. That was my first entry.

With a blue arrow, I have marked my second entry. This was a pinbar-looking candlestick pattern.

So far, price has reached my first price target- the support level at 131.65. I want to see what candles will form on this level. The daily candle does carry an even greater meaning. For now I will keep on monitoring, but bear in mind that we might see a retracement back to 133.00, which could be profit taking or a continuation of the uptrend.

GBPUSD Trading Analysis

Today’s trading analysis is coming from GBPUSD. The last time I wrote about it, price marked a pinbar and since then has been trading in a range. There was a second pinbar on Friday and today, we are experiencing a bullish engulfing pattern.

This is certainly another bullish pattern, but for an even better perspective, I will be looking for a confirmation from the 4H chart. Ideally this would be a retracement towards the 1.3150 area and then a bullish candlestick pattern.

My hypothetical initial target would be the level of 1.3350, which is the next resistance level. A more ambitions target is the level of 1.3600, but it will all depend on future price action, which we will need to read and not expect!

Happy Trading,

Colibri Trader

 

p.s.

Check out how to get on a trade that you have initially missed

or why does time in trading is so important and nobody talks about it