Dear GBP/USD Trading Signal Traders
The trading signal from last time has been triggered and is still valid. I don’t see a reason why you should cut your position in this trade. There was a bearish rejection candle from Friday and this is going to attract even more buyers in the coming trading sessions. In general, the gold and silver markets are attracting a lot of attention recently. You can check out my recent article about gold/silver mining stocks, as well.
Today, I am looking to go long in GBP/USD once I have a chance. I can see more bullish activity here and it seems like a bottom is forming here. There was a fake breakout below 1.4000 and the price has rapidly retraced after that to current levels. The price action from the last two trading sessions is confirming my positive view. What I am seeing is a bullish engulfing formation. The last two candles do engulf fully the previous two bearish candles. The candle from Friday is a doji-like candle, which implies hesitation. The way I see this hesitation is more of a pause that market participants are taking before further bullishness. I will be looking to go into a long position after a small retracement towards 1.4400. My entry would be at 1.4400 with a stop-loss placed just under 1.4250. My first price target is the level of 1.4600. Then, depending on price action, the next level would be 1.4800.