Top Trade Idea For May 22nd, 2014 – GBPUSD
By Mircea Vasiu on May 22, 2014 12:40:06 GMT
I know people are bullish on the US dollar and they should have all the fundamental reasons in the world to be so: Fed is tapering (which is still tightening make no mistake), there are increasing talks about a rate hike in the United States to come sooner rather than later, etc.
However, looking at charts, situation is a bit different.
This daily GBPUSD chart shows a powerful running variation of a contracting triangle with the pattern forming right below the all important 1.70 level.
Failing to break the level once does not mean the level will not be broken and from my point of view the current pattern is just a pattern in which price is building energy for breaking the 1.70 mark.
Therefore, our 2 steps recommendation calls for 1.70 to come and with that break the target for the move should be anywhere within 1.7050-1.7100 levels. Exiting the longs and wait patiently for a correction in the 1.6900/1.6850 area to come and that would be a place for going long targeting the 1.70 level.
The stop loss in both cases should be 1.6700 level, as that would invalidate both scenarios.
About Mircea Vasiu
Mircea Vasiu has an MBA in International Business from an American University, graduating Magna Cum Laudae. He has been a professional trader for the last 8 years and is involved in various educational projects for different financial companies. He also runs a trading signal for the currency markets at www.capitalpropertiesfx.com.
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