The GBP/USD pair is in an interesting moment for may. Currently, the price is facing an important long-term resistance between 1.4250 and 1.44. If the price breaks that resistance, the next objective would rise until 1.46; but this is looking at the monthly chart, and the homework is not yet done.
If we look closer, in the daily chart we have a gap done today, May 10. This gap sets an important support at 1.3970, and we think that as long as the price does not go below that, rises are more likely than falls. It could serve as a stop loss for any trade.
In April, we said that we were expecting a correction, and it did not happen, showing us that the GBP is strong. However, it is reasonable to think that the price will stop at any point, more so if we are at the important resistance we talked about above, so we would not make a trade now. The price could do a correction when getting close to 1.4235, which is the last top the price did in February. If that correction happens and the price gets close to 1.40, we could try a trade for the long-term with a nice profit-loss ratio with a stop-loss at 1.3970 and an objective at 1.4250.
If the price just goes up and up, we have lost our chance, and it is best to assume that these things sometimes happen.
This article was written when the GBP/USD was at 1.4132 on May 10.
EUR/GBP for May 2021
In the EUR/GBP analysis for last month, we had a trade opened, and we said that we had been a little nervous about it. Well, things have changed now, and it seems that the movement we expected is finally developing. We set the objective at 0.8410, and that is still our target. The stop-loss was at 0.8736. After today, we can tighten it to 0.8690. If you ask us, we would keep the original one; but if you don’t like the idea of long-term trades and you want movements, then you can move it to this new level because if the prices goes back above 0.8690, the current bearish movement that would benefit us would lose a big share of its strength.
Therefore, there is nothing to do really. Just wait until we reach the objective to collect the profit, should the market want it.
This article was written when the EUR/GBP was at 0.8604 on May 10.
We do not give financial advice, and this blog post is only for entertainment purposes.