Trade Recommendation: GBPUSD
With the recent bearish action the Pound continues to show weakness. The major resistance at the Monthly Pivot Range has held but now we need confirmation to see if the price will hold at current lows as we are approaching a test of this level at the time of this writing.
The action to take is to place a sell order to enter the market short if the market trades below the swing low of 1.3916. This will confirm the market wants to move lower. Place the stop loss and the profit targets stated below.
Entry Price: 1.3916
Stop Loss: 1.4010
Profit Targets: First profit target 1.3810. Second profit target 1.3725. Once price reaches the first profit target lower the stop loss to breakeven. Then if the market follows through to lower levels manage the trade by trailing a stop loss 50 points behind until second profit target is reached or stopped out.
Disclaimer: The writer has no positions in the forex markets but does engage in short-term trading of forex and futures.
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