GBP USD Technical Analysis - GBP USD Trading: 2015-01-28

Gaining bullish momentum

Let’s keep an eye on the British pound on the H4 chart. After the trend line breakout, our pending buy order was opened and it has already produced some profit. Bulls are constantly pushing the price upwards, updating the highs of Donchian Channel. RSI-Bars oscillator formed a bullish gap and a new trend channel that confirms the chosen price direction. However, at the moment there is a pullback, which means that we can look for a comfortable entry point to place an order. The price is currently drifting near the “double top” pattern which is located at the level of 1.52244. The resistance line breakout is possible only in case of stable bullish sentiment. It means that this mark can be used for placing a new pending order. Stop Loss is to be placed at the trend line crossing: it is confirmed by Parabolic historical values. Conservative traders are recommended to wait for oscillator confirmatory signal: the breakout of the high at 71.8099%.

After order opening, Stop Loss is to be moved after Parabolic values near the next fractal low. Thus, we are changing the probable profit/loss ratio to the breakeven point.