Is the GBPUSD a buy? What is the risk. What are the targets and why?
Citi recommended buying the GBPUSD at 1.5192 today - with a reward at 1.5390. The pair is on sale at 1.5150, forty or so pips below their entry. Weaker UK ISM sent the price lower and a strong stock market in the US helped push the dollar higher and the GBPUSD lower. Having said that, Citibank stop has still not been approached. In fact it is still 110 pips away.
How would I look at this trade now? Is the GBPUSD a buy? Where would be my risk? What about reward? In this video, I take a look at the trade now.
What do you think?
Update: GBP/USD bottomed at 1.5108 (stop was at 1.5060) in the day ahead before eventually hitting 1.5500 (target was 1.5390).