I’m back! I’ve been away from trading for so long that I can hardly believe all the huge moves I’ve missed! Nonetheless, trading opportunities are always around. Thanks to the prodding of my friend Soon Chye, I’m looking at my charts again.
Might be alittle rusty from the downtime, but here it is… my view on GBPUSD.
GBPUSD 8H Chart
Even with the current USD weakness, the charts seem to imply that a short opportunity is coming soon. Here’re the reasons I see for preparing a short.
- The move is clearly parabolic, and it is common for parabolic moves to retrace.
- I’m counting the end of a corrective wave up. Even though the moves are somewhat parabolic, it does look corrective with its overlapping waves
- It is approaching a significant resistance level (30 Apr High), and a round figure (1.6300)
Reasons for holding back:
- I think there’s going to be a pull back and then a higher high before the move retraces. I still don’t see an divergence on the 8h and 4h at this point.
- I can’t get a good count on the final v wave, which looks like it still has one more wave to go.
There’s still a short term opportunity for trading. If you are able to watch the charts, I’m fairly sure that even if price does break 1.6300, you will still achieve a nice bounce (probably 30-50pips) off that level.
Good luck with your trading!
