While the 4 hour charts hint at further short term weakness, the dailies remain constructive, so leaving some room on the downside to buy a dip does appear to be the plan.
The 100 DMA and Daily Cloud base, both currently at around 1.2485 but falling fast (chart below), the rising daily Tenkan (1.2465) and the minor rising trend support (currently 1.2450 – 4 hour chart) should provide decent support.
The topside does still appear to have plenty of room, with initial targets being last weeks high of 1.2673 and then above that, at the December high of 1.2774.
Buy GBPUSD @ 1.2510 (50%)
@ 1.2465 (50%)
SL @ 1.2390 (100%)
TP @ 1.2770 (100%)
This order is good for entry until prior to the FOMC Meeting – Wednesday.
This information is a personal view only, this being a trade being undertaken by FX Charts. It is not an inducement or recommendation to trade although you may do so if you agree with the parameters of this idea.. Refer to our disclaimer here.
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