The GBP has been ranging lately roughly between 1.47 and 1.50. As it reached the top of its range today, sellers entered and down it came. The pair looked beautiful to the downside on the Daily, 4 hr and hourly charts. We fine tune our entries on the 15 minute chart and patiently awaited the US Unemployment claims release.
The number was USD positive and the majors moved in tandem. We entered short and were quickly rewarded. Price briefly paused at Target 1 then cut right through Target 2 – the next candle. We exit on the bounce protecting Target 2.
The Final GDP q/q number for the US will be closely watched by traders tomorrow. If this number is a good one, the GBP may drop to test the recent range lows of 1.4720 or the FOMC low near 1.4625. If the GDP number misses than we would expect a reversal to the upside.
Good luck with your trading!
Back tomorrow if we find a trade.