Good morning team,
I decided to hold off trading last night until the DXY broke out of the pennant formation, and as expected the USD strengthened across the board. EURUSD was the correct trade but unfortunately it came back to breakeven before moving lower. The GBPUSD has also broken down from a rising wedge structure at a double top zone, so we are expecting further downside leading into tonights US Non-Farm Payroll and unemployment data release.
GBPUSD Daily Charts
The lower end of the rising channel is providing a target for the short position.
GBPUSD 4 Hour Charts
Trade Setup: SELL market execution, current price 1.4098, stop loss 1.4171 and take profit 1.3974.
Stop loss: 73 pips
Take profit: 124 pips