To end my analyses this Friday, I will include GBPUSD in the Forex markets’ department.

I have made 2 trade plans in the past which you can read below:

https://www.finlogix.com/analysis/20220829/overselling-fears-might-form-gpbusds-next-historical-lows

https://www.finlogix.com/analysis/20220909/gbpusds-developing-ascending-triangle

Although UK has better macroeconomic reports this week compared to US with one remaining due out tonight, the Retail Sales month to month figures, the British Pound remained weaker against the Greenback along with other major currencies.

Before we move on to my analysis and trade plan, let’s check GBPUSD’s high timeframe candles first:

Weekly Candle: Long Legged Red Doji with Small Body

Daily Candle: Previous close is a Green Hammer with Medium Body current is a Red Spinning Top

GBPUSD has a better peforrmance than other major currencies against Greenback at least in the short term perspective.

On the daily chart, it is still within ranges and I like to trade it from there.

I can see a nice liquidity grabbing during the 1.25 breakout last November 2023. This move flipped 1.25 resistance in to a support range so I definitely buy the potential re-tests.

In the chart above, I simply layout the red line as range’s resistance, blue as median point and green as support.

Based on these lines, my trade plan is to set a buy order on the range’s support and sell right away to the median point while setting the stop loss mark in the liquidity grab area for a 2 risk/reward ratio.

As long as this range holds in to play, there is a slight advantage that the GBPUSD bulls break this range higher.

For now, let’s see how this trade plan ends and re-assess later.

GBPUSD Intraday Analysis and Trading Plan For February 16, 2024

Feb 16 2024

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