Last week I gave a trade idea on XAUUSD with a target around the $2,020 price line. At the time of writing, XAUUSD already exceeded the target and I’m sure that would leave a lot of people wondering what to expect next. Below, I have presented my view of how I expect the price action to turn out in the meantime.
GBP/USD tests the downside
2020-02-21 • Updated
GBP/USD had been rejected down from the 200-week MA in the 1.3033 area. Then it fell below the 100-week line at 1.2950. On Wednesday, the pair closed below the 200-day MA (currently at 1.2936). As long as it is trading below this level, the technical picture will remain bearish. There may be some support at 1.2870 (February low), but the odds of an upcoming breakout to the lower levels are big enough. The targets in this case will be at 1.2825 and 1.2770 (previous lows). The return above the 200-day MA will allow a retracement to 1.30. However, this psychological level and the downtrend resistance will likely stop the advance.
Trade idea for GBP/USD
SELL 1.2860; TP1 1.2825; TP2 1.2770; SL 1.2880
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Bearish Scenario: Selling below 22.65 with TP1: 22.34 (intraday) and TP2: 22.02 (swing). Bullish Scenario: Buying above 22.70 with TP1: 22.90.
Intraday and swing scenarios based on price action and volume profile.