The British Pound has lost 1300 pips in 57 days. An incredible drop as the flight to US dollar continues. The moves on the way down have been massive, wtih 761 pips coming off in just 10 days.

This has put the GBPUSD firmly in oversold territory but we must be mindful that a market can remain oversold for much longer than we can remain solvent (as the saying goes).

This reversal trade is looking for a short term bounce from here with a clear stop loss level, as trying to fade these trends can be fruitful, but equally frustratingly difficult.

Be mindful that the dominant trend is well and truly down and if this chart moves lower, then this trade is off or an exit. For those new to trading, best watching this trade idea from the sidelines.

GBPUSD reversal trade 1.56 RR

May 11 2022

Stop Loss -0.52%

Holding time 18hr

1.23130

Entry price

1.22490

Stop loss price

1

3