29/5/2014 – The GBPUSD Channel breaks to the downside

Sterling has been a great story these last couple of months. If like me you’re looking to buy strength and sell weakness then GBP has been strong all year.

On the daily chart of GBPUSD we can see that price has been chugging upwards in a nice channel. Price tickled the soft underbelly of the 1.70 handle at the start of May before rolling away. It then formed a lower high on the 21st of this month before confirming a move lower by breaking the low of the channel, and the swing low of 15th May at 1.6730.

20140529 gbpusd channel break part 1 blog

20140529 gbpusd channel break part 2 close up blog

I will wait to see if prices rises, ‘kisses the trend-line’ and then look to drop. That would be a good entry for any wannabe GBPUSD bears. Lets wait and see what happens.

Trade well,

Paul

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About FXTraderPaul

A professional Trader and Coach, FXTraderPaul blogs about his adventures from the front-lines of FX Trading. A Trader and educator who can walk the walk as opposed to merely talk the talk!

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  1. 16th June: An interesting day for the UK | FXTraderPauls Trading Adventures - June 17, 2014

    […] can trump Technicals in a trade set-up and GBPUSD was a great example of this.  I recently blogged about how the long running daily upwards channel had been broken to the downside and that I was waiting to see if we would get a move lower.  The Technical Analysis channel had […]

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