Trade FOREX with FXCM

  • Award-Winning Platform
  • 24/7 Customer Support
  • Trade Directly on Charts
  • Free $50K Practice Account

Resources

Forex: GBP Scalps Bias at Risk Ahead of Key Support- Bearish Sub 1.54

By , Currency Strategist
22 April 2013 19:55 GMT

GBPUSD Daily Chart

Forex_GBP_Scalps_Bias_at_Risk_Ahead_of_Key_Support_Bearish_Sub_1.54_body_Picture_2.png, Forex: GBP Scalps Bias at Risk Ahead of Key Support- Bearish Sub 1.54

Chart Created Using FXCM Marketscope 2.0

Technical Outlook

  • Rebound off the 1.54 Objective cited last week has continued to play out with precision
  • Broader bias remains weighted to the downside- But may see limited declines on a move into key support confluence in the near-term
  • Looking for extremely nimble intra-day longs, with rallies offering favorable short entries sub-1.54
  • Break below key support 1.5188 (23.6% retracement, channel support) puts us back on track
  • Objectives 1.5092 (monthly pivot) & 1.5012 (61.8% long-term Fibonacci extension)
  • Breach above 1.5330 deemed neutral- Breach of 1.54 invalidates bearish bias
  • RSI Break below 40-threshold (on a close basis) offers further conviction on subsequent short scalps
  • Main events to watch this week: UK 1Q GDP on Thursday

GBPUSD Scalp Chart

Forex_GBP_Scalps_Bias_at_Risk_Ahead_of_Key_Support_Bearish_Sub_1.54_body_Picture_1.png, Forex: GBP Scalps Bias at Risk Ahead of Key Support- Bearish Sub 1.54

Scalp Notes: Bottom Line: Need a break sub 1.5188 to get aggressive on the short side. The RSI signature since the Sunday open remains constructive in the near-term- Trigger break (depending on time) to put intra-day shorts in play. Watch for contentious price action at 1.5274/82 and into the 1.5188 threshold.

-Blue Retracement- Taken from Decline off 1.54

-Green Retracement- Taken from Advance off March low

*We will remain flexible with our bias with a break below 1.5188 eyeing subsequent support 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

1.5274 / 1.5282

23.6% & 38.2% Retraces

Resistance Target 2

30min

1.5307

38.2% Retracement

Bearish Invalidation

30min

1.5330

61.8% Retracement

Break Target 1

30min

1.5365

78.6% Retracement

Break Target 2

Daily / 30min

1.5407 / 1.5410

38.2% Retrce/April High

Break Target 3

Daily

1.5455

100% Ext Off March Low

Break Target 5

Daily

1.55 / 1.5520

Big Figure / R2 Monthly

Support Target 1

30min

1.5252

23.6% Retracement

Support Target 2

30min

1.5220

Soft Support / Pivot

Bullish Invalidation

Daily / 30min

1.5188 / 1.52

23.6% & 38.2% Retrces

Break Target 1

30min

1.5155

Soft Support / Pivot

Break Target 2

30min

1.5120 / 1.5130

50% Retrace / Pivot

Break Target 3

Daily

1.5090

Monthly Pivot

Break Target 4

30min

1.5055

61.8% Retracement

Break Target 5

30min

1.5032

April Low

Average True Range

Daily

113

Profit Target 25-27pips

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)

Introduction to Scalping Strategies Webinar

Beginner Fibonacci Expo Presentation

New To Forex? Watch this Video

provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from

22 April 2013 19:55 GMT