GBPUSD offered shorts an entry at 1.2498 early this week, but markets point to a more appealing risk-reward in the coming days.
Get the details in today’s video, and see why the US Dollar Index (DXY) is pulling back today.
Let’s get started!
GBPUSD is consolidating this week following last week’s selloff that took the pair below 1.2500 support.
As mentioned in Saturday’s forecast video, 1.2500 flips to resistance.
That’s an area of GBPUSD resistance between 1.2500 and 1.2535.
So far, we’ve seen a retest of 1.2500, specifically the 1.2498 level I shared last weekend.
However, the DXY has come into channel resistance this week, along with the 106.00 weekly resistance area.
As mentioned in Tuesday’s VIP-only video, a bounce from GBPUSD seemed likely, given where the pair was trading, along with that DXY resistance.
I wasn’t looking to play this GBPUSD bounce due to last week’s breakdown.
Instead, I’m watching for a potential sweep of the April 15th high to offer a more complete retest of the 1.2500 resistance area.
That would also offer a better entry for shorts.
Of course, it depends on what kind of price action we get at 1.2500, and what the DXY is doing in relation to 105.85.
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