Trading idea: Long GBP/USD in dynamic support with an eye on 1.3100

GBP / USD QUOTATION TODAY:

• Long GBP/USD shows attractive given the technical structure of the price.
• An idea of ​​trading involves the establishment of purchase positions in the technical support formed in the 1.3000.
• In this article we present the most important technical levels to take into account in the short term.

In the 4-hour chart of GBP/USD (British pound – US dollar) it can be seen that the price of the pair is a short distance from a dynamic support formed by a bullish guideline extended since mid-October. This trend line has slowed down many times with much predictability, which reinforces its validity at this time.

With this in mind and given the price structure, a very interesting trading strategy contemplates the execution of lengths in the 1.3000, considering that in this region there is also the “weekly S1” of the pivot points.

With regard to the objective of benefits, this can be placed in the resistance established by a descending guideline drawn from the maximum of December at 1.3100. It is necessary to point out that in this region the pivot point and the moving average of 200 periods in 4-hour sails are also aligned.

Meanwhile, the order to curb losses in the event that the market moves against the position can be set on the floor given by 1.2925. Here the Fibonacci retracement of 38.2% of the upward movement from September to December 2019 converges.

In this purchase idea in GBP / USD, we have a risk / benefit ratio of approximately 1: 1.5. This proportion indicates that for each pip in danger, a gain of 1.5 pips is sought. (risk 65 pips, possible gains 100 pips if no slip occurs).