GBPUSD Bottom Forming: BIG BUY if SUPPORT HOLDS
Hello Traders, GBPUSD has dropped more than 450 pips in the last couple of weeks and surprisingly, it has managed to TAKE OUT all the SUPPORTS on its way down. Breakdown of negotiations between Labour and Tories and Prime Minister May's resignation plan in June has played its part to pull the Pound down.
However, market participants were already aware of both these issues from quite some time now. Hence, we didn't see any major MELTDOWN in the Pound like 200-250 pips drop.
At this point, a rebound in prices is most likely. In the coming weeks, we will see a lot of NEWS-INDUCED volatility in Pound pairs which might actually be POSITIVE for GBP.
In the weekly chart, we are now at an area of decent SUPPORT. Although price can still go lower by another 60-100 pips, I would rather BUY THE DIPS.
So, I would advise traders to BUY at 1.2680-1.2720 with SL below 1.2590.
TPs can be set at 1.3040 and 1.3350 respectively.
However, market participants were already aware of both these issues from quite some time now. Hence, we didn't see any major MELTDOWN in the Pound like 200-250 pips drop.
At this point, a rebound in prices is most likely. In the coming weeks, we will see a lot of NEWS-INDUCED volatility in Pound pairs which might actually be POSITIVE for GBP.
In the weekly chart, we are now at an area of decent SUPPORT. Although price can still go lower by another 60-100 pips, I would rather BUY THE DIPS.
So, I would advise traders to BUY at 1.2680-1.2720 with SL below 1.2590.
TPs can be set at 1.3040 and 1.3350 respectively.