GBPUSD, Daily
The GBP has seen losses over the last 7 trading sessions in the aftermath of the markets’ knee-jerk reaction to the U.S. Fed rate hike last week. The pound continues to trade with a weakening bias against both the dollar and the euro.
The GBPUSD reached my initial target at 1.4890 and also my second target at 1.4813 to reach a low near the 1.4800 area, during yesterday’s session (See my December 14 and December 21 post).
At the time of writing, the GBPUSD is bouncing off the 1.48 level and trading up around 70 pips in a “technical bounce”, even though the U.K. Q3 GDP has been unexpectedly revised lower, which is seen as negative for the GBP.
I still believe that traders should be on alert and seek periods of GBPUSD strength, as an opportunity to resell the pair near the upper end of the longer term downward slopping trend channel, ideally between the 1.50 – 1.51 areas for a 1.4730 (March 2015 Low) target price support area spotted on the weekly chart.
Janne Muta
Chief Market Analyst
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About Janne Muta, HotForex’s Chief Market Analyst
Janne Muta is a seasoned industry professional with over 16 years experience in the global markets. Originally from Finland, Janne has worked for institutions in both Helsinki and London as an institutional fund manager, global market analyst and FX educator.
Traders and fund managers from around the world have benefited greatly from Janne’s technical analysis methods. The indicators and price action based trading models he has developed, have, after rigorous testing, proven to be invaluable in identifying high probability trades.
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