GBPUSD Looking For Long Setup

14 Ogo 2013

The GBPUSD pair continues to present signs of strength within the broader technical structure. As long as price can stay above the 1.5200 level, it remains bullish in my opinion. The intraday opportunity I am looking for is a retest of the 1.5420 to 1.5386 area. This is a potential bullish reversal zone. Within this price range I will be watching my 1 Hr time frame for price action (candlestick patterns), price structure (double bottoms, etc) and volume analysis. If the price can validate then I will look to initiate a long position with a stop somewhere in the lower 1.5370s. If price closes below 1.5370 area then it completely negates this long idea. Remember before entering, it is very important to validate, this is how we filter trade setups. If you don't know how, then do not trade this setup. Upon validation, I am looking at my first profit target at 1.5485 area and depending on how price action unfolds, to possibly hold some into the 1.5590s as my aggressive target. Overall this pair is poised to see higher prices, possibly back into the 1.5700 - 5800 area. Remember be flexible, things can change quickly.