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Can the GBP/USD pair continue to rise?

 


Dear traders! The UK's easing of restrictive measures has prompted us to reconsider the direction of the GBP/USD currency pair.

Can GBP/USD continue to rise as the rate is forming a double top?

Here is our GBP/USD trading idea:


You may not know: British Prime Minister Boris Johnson has allowed the easing of restrictive measures since May 17. Accordingly, indoor restaurants, along with some non-essential business activities, are also allowed to reopen.

The easing of restrictions and the slight chance of a referendum in Scotland could be an opportunity for investors to buy GBP/USD. The pair has gained 100 pips since yesterday. Can the uptrend last for the next few days?

If traders continue to expect the UK economy to recover, the GBP/USD pair could return to the previous peaks of 1.4200 and 1.4300. As such, the pair can move up from 100 to 200 pips, but investors also need to be on the lookout for signs of a reversal!


GBP/USD is currently about 100 pips away from the February high of 1.4200. More importantly, GBP/USD is also 200 pips away from 1.4300, which used to be the top of the Double Top pattern. ) was reached in 2018.

We cannot rule out the possibility that the GBP/USD currency pair could fall. The downtrend is still within the average volatility of GBP/USD in May.

If there are not enough buyers in the current price zone of GBP/USD, then investors may consider short selling near this week's high and then aiming for the "neckline" of the Double Top pattern near 1.3750. However, we need to find trends in the shorter timeframes before entering a sell trade, because that would be bad if we tried (and failed!) to trade at the top of the market. school!


This content is for informational purposes only and should not be considered investment advice. Risk management is a top priority in financial trading and investment.

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