The pound (GBPUSD) may have set up the best opportunity of 2024 with last week’s close.
In today’s video, I share exactly how I’m trading GBPUSD, including key levels and targets, one of which is 550 pips below today’s rate.
I will also share the latest on the US Dollar Index (DXY) as it breaks out this week.
Let’s get started!
[embedyt] https://www.youtube.com/watch?v=WmPer35_mIA[/embedyt]GBPUSD has been a relatively tough currency pair to trade in 2024.
However, when you consider what’s happened on the DXY and even the Euro Index (EXY), this consolidation makes sense.
Both of those markets are trading at the apex of multi-year consolidation patterns.
Furthermore, we can now conclude that the GBPUSD March rally was nothing more than a liquidity grab.
Short liquidations developed above 1.2825 during the month-long consolidation in January.
Markets seek liquidity, hence why GBPUSD swept that 1.2825 level early this month.
We have a good idea that this entire move was a prolonged fakeout due to last week’s sub 1.2640 close.
So far this week, GBPUSD has filled the imbalance left open from Friday’s breakdown.
We haven’t seen a complete fill of the imbalance, which extends toward 1.2690, so that could be a key factor in determining any stop loss placement here.
As for targets, the 1.2500 region will be a significant support area on the way down.
But with last week closing back inside the 2023 descending channel, 1.2500 as a final target is probably too conservative.
Targets like 1.2375 and 1.2200 could come into play following the recent breakdown.
As always, GBPUSD will be a level-by-level market.
Alternatively, a sustained break back above 1.2640 and especially 1.2700 would negate the bearish outlook and expose 1.2800.
Want me to help you become a better trader? Join our VIP group for daily analysis videos, exclusive charts and setups, and see my trades in real-time! Plus, get the new video course that launches this month!
