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Fan Yang

GBP/USD - Looking to Buy Around 1.30; Target 1.3300, Stop: 1.2920

The Pound-US Dollar pair $GBPUSD has been consolidating after a bull run since late 2018 into March 2019. I am looking to go long near the consolidation support area.

GBP/USD Daily Chart

(click to enlarge)

Bullish Signs:
- After a bearish 2018, GBP/USD showed bullish reversal signs in 2019. 
- Price has pushed back above the cluster of 200-, 100-, and 50-day simple moving averages (SMAs). 
- Price has broken above a projected falling resistance, and has killed the pattern of lower highs and lower lows.
- The RSI has tagged 70 and held above 40, which reflects maintenance of the bullish momentum.
Consolidation:
- Note that price has been making higher highs and higher lows since late 2018. 
- However, it has flattened recently with support right under $1.30, and resistance around 1.3340. 
- Because of the prevailing bullish push, I am considering going long in the current consolidation support area, around 1.30.
Reward to risk:
- Let's say I get an entry point of 1.3020. If my stop is 1.2920, and target is 1.33, the reward to risk will be 280 pips to 100 pips, or 2.8:1.

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