End Of Week Trade: GBP/USD Retracement Long From 1.2962-1.2950

Amid all of today’s U.S. economic data, we have seen some good action across many forex pairs. Traders have engaged the GBP/USD, enhancing volatility and bringing a key technical level into play. The late U.S. session is giving us a potential long trade in the GBP/USD.

GBP/USD Daily Chart- Primed To Buy A Pullback?

A few key technicals to be aware of:

• GBP/USD has traded above Thursday’s session high with dedication

• A proximity test of 1.3000 at 1.2994 was issued on this morning’s U.S. economic data

• Key level at 38% of August’s range 1.2962

• 13 Day SMA at 1.2950

• A Bollinger Band MP and SMA crossover is pending for the next session.

Bottom line: Heavy resistance levels at 1.2962 and 1.2950 did not hold through today’s U.S. session. Now, those two levels act as downside support. A pending crossover of the Bollinger MP and 13 Day SMA is likely in the coming session and may signal an intermediate-term shift in market sentiment.

This trade is strictly on technicals. A long from the 1.2962-1.2950 area is a good spot to get in for the rest of the U.S. session.

Right now, and probably for the rest of the U.S. session, this market will be quiet. An old trader axiom says “never sell a dead market.” Well, this trade does the opposite. With solid location for entry and modest profit targets, collecting few pips for the road is very possible.

Stay tuned to my colleagues Rowan, Arslan, and Skerdian for in-depth forex analysis as we open next week's trade. As always, trade smart and for tomorrow!

ABOUT THE AUTHOR See More

Shain Vernier

US Analyst

Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.

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