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GBPUSD Tests Key Threshold- Scalping the 1.54 Pivot

By , Currency Strategist
15 April 2013 20:00 GMT

GBPUSD Daily Chart

Forex_GBPUSD_Tests_Key_Threshold-_Scalping_the_1.54_Pivot_body_Picture_2.png, GBPUSD Tests Key Threshold- Scalping the 1.54 Pivot

Chart Created Using FXCM Marketscope 2.0

Technical Outlook

  • 1.54 Objective cited last month has now been achieved
  • Broader bias now aligns with the near-term as we look to play the rebound off this key threshold. (Note: breach on a daily close basis invalidates our initial bearish scalp bias)
  • RSI holding 60-threshold- suggests broader bias remains intact / near-term top may be in place
  • RSI trigger break to confirm the directional bias
  • Key support region 1.5188-1.5265- Break below offers further conviction on subsequent short scalps
  • Main events to watch this week: CPI/PPI on Tuesday – BoE minutes & Jobless claims on Wednesday – UK Retail Sales on Thursday

GBPUSD Scalp Chart

Forex_GBPUSD_Tests_Key_Threshold-_Scalping_the_1.54_Pivot_body_Picture_1.png, GBPUSD Tests Key Threshold- Scalping the 1.54 Pivot

Scalp Notes: Bottom Line: 1.54 is Paramount- Topside break on a close basis risks further advances into our resistance targets. The RSI signature since the Sunday open remains bearish with only a breach above the 60-threshold suggesting that the recent decline may have run its course. Watch for contentious price action as we head into the 1.5243-1.5274 range – 1.5240 has been a key pivot for the pair dating back to February.

*We will remain flexible with our bias with a breach above 1.5410 eyeing subsequent resistance targets. It’s extremely important to give added consideration regarding the timing of intra-day scalps with the opening ranges on a session & hourly basis offering further clarity on intra-day biases. Use this app to distinguish the various trade sessions.

Key Threshold Grid

Entry/Exit Targets

Timeframe

Level

Significance

Resistance Target 1

30min

1.5340

Soft/Pivot Resistance

Resistance Target 2

30min

1.5365

78.6% Fib Ext

Bearish Invalidation

Daily

1.5407

38.2% Retracement

Break Target 1

30min

1.5455

100% Fib Ext

Break Target 3

Daily

1.5500

Big Figure1

Break Target 4

Daily

1.5520

R2 Monthly Pivot

Break Target 5

Daily

1.5585

50% Retracement

Support Target 1

30min

1.5293

61.8% Fib Ext

Support Target 2

30min

1.5273

23.6% Retracement

Support Target 3

30min

1.5243

50% Fib Ext

Support Target 4

30min

1.5215

Soft Support

Bullish Invalidation

Daily/30min

1.5188

23.6% / 38.2% Retrace

Break Target 1

30min

1.5160

Soft Support

Break Target 2

30min

1.5130/1.5120

23.6% Ext /50% Retrace

Break Target 3

Daily

1.5095

Monthly Pivot

Average True Range

Daily

102

Profit Targets 23-25pips

For updates on this scalp and more setups attend Michael’s Scalp Webinars or follow him on Twitter @MBForex

Reviews today’s Scalp Webinar for further insights and current trade setups

---Written by Michael Boutros, Currency Strategist with DailyFX

To contact Michael email mboutros@dailyfx.com or Click Here to be added to his email distribution list

Join Michael Tuesday, Wednesday and Thursday mornings for a Live Scalping Webinar on DailyFX Plus (Exclusive of Live Clients) at 1230 GMT (8:30ET)

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15 April 2013 20:00 GMT