We see GBPUSD bursting up after positive data.
What’s the price movement now?
Big picture planning
Using Fibonacci, we detected some space
A potential bullish expansion above 6 months high; note as of posting, the week has not closed yet
1234 not prominent in H1 timeframe
We do see key resistance coming in at 15910-20 16010-20
Update 18 Sep 2013 6.06pm
Many students asked how entry is made on GBPUSD. I said in 4M class, because it was very bullish especially from Daily chart perspective (which I have also posted above), retracement will tend to be shallow and might not happen in H4.
The problem with GBPUSD in H1 is that the suspect 1234 did not map out properly.
– 3 seems higher than 1
– 4 seems higher than 2
These do not meet the requirement of 1234 but from price behaviour, price broke above a recent high which is also a key resistance
Therefore, I tweeted this:
$gbpusd according to my blog post is very bullish. Recent r resides 15840
— TerraSeeds FX Tflow® (@terraseeds) September 13, 2013
This is break-high trade. I entered on 2 occasions:
1. a H4 close above 15840
2. a retracement back to 15840 as support (of course, add a buffer)
Following announcement of BOE news just now, GBPUSD broke previous high again. Immediate resistance resides at 1.6000 (round number) 16020-40 and a strong resistance at 16150-60