GBP - Long as Dollar Hits Retracement Top

In consideration of dollar topping I will make a small long entry into pound if it reaches my target.

I have avoided going long pound because it looked like trouble but its been hanging around this for a while now, forming a more solid basing structure and if/when dollar falls it will bounce.

So I will only buy if it reaches my target that is deep relative to the trend.

If you notice there are 3 long wicked hammer candles. And so there will liquidity to tap below this point.

Those pivots are within the blue retracement Golden Window taking the pivot low up to the local high.

Then an extension 1:1 GW for a 3 wave extension from the local high is also in the retracement GW. And interestingly that is just below the 3 hammer lows.

So my limit buy order is exactly on the 1:1 @ $1.6065.

This would also print an Inverted Head & Shoulders pattern.

No stop loss but if it starts trending below the head then I will set a limit sell at breakeven.

Will review where TP upon further action and watch dollar - perhaps around $1.282.

Not advice

Trade active:

This will probably get to the 1:1 but I have made a first entry here as there has been a small pop at the "liquidity Low."

Comment:

Dollar has now hit my 0.786 retracement target for GBP long entries.

It doesn't have to reverse here of course, it could be a higher high, but dollar likes this ratio and previous tops have pivoted here.

Trade active:

Now fully filled

Comment:

Dollar is moving beyond the 0.786 and so it will more likely make a higher high.

If it does then it will hit the 50 week MA on the Futures chart and I will add one more GBP long if it gets there.

Comment:

GBP will have a hard bounce soon but overall GOLD is looking the better trade and I have added to my position there.

Comment:

Nice bounce to open the week and my trade is now in profit.

Its bounced all the way back to re-test the low of the local distribution circled before Friday's high volatility dump.

Its also found resistance at the yellow 4H 50MA.

The green area is a support band and once again price has overlapped and so much volatility but yet also overlapping lows is a clue that a reversal is coming.

Also there are plenty of liquidity landmarks above that will be attractive for price to go and explore.

If it pushes up above the 50MA then much more chance the reversal is on 🧐.

Trade closed: stop reached:

Dollar hasn't showed any significant weakness and pound continues to slip so i'll exit here and wait for a better opportunity.

There are lots of liquidity landmarks above and so if GBP did bounce then there might be a pleasant short, but if dollar continues to push up then this can continue to slip down before any bounce.

Comment:

You get all sorts of clowns on this website like the one in the comments section here but happy to have closed this trade yesterday for a 0.45% loss.