Long Trade set-up on GBPUSD Hourly chart.

Pls NOTE: We now have a possible Long trade set-up, however, as we concluded earlier today, conservative traders should refrain from taking this trade, or at least reduce their risk.

The Hourly chart above is currently forming a tradable pattern. Price seems to have topped temporarily @ 1.6543. Hence, we expect price to retrace to the area between 1.6471 and 1.6399 (which is the area between the 50% and 100% fib. retracement levels – drawn from the most recent Hourly swing low to the current price-top). Let’s seek to buy around this area. If price breaks the 1.6399 level downward, our bullish bias is no more valid and we enter a no-trading zone. Our primary profit target is @ 1.6582 (the 127% fib. ext.).

Also, if price breaks above 1.6543 (current price-top) before retracing to the buy-area, we’ll have to redraw our Fibonacci tools using a new top & the most recent Hourly swing low to determine new potential areas to buy.

The 15min. chart above gives us a clearer view of the Hourly price action and the potential areas to buy (please note it’s advisable to set a Limit order ahead of time as price could move down to these levels and reverse sharply in our favor)
This chart is rather cluttered but if we look closely, there is a particular potential reversal level available:

fib 78.6% ret. @ 1.6430.

Personally, I consider this 78.6% level a potentially strong reversal level based on the broken most-recent Hourly swing high @ 1.6435.

Initial Stop Loss @ 1.6397; primary Profit target @ 1.6580 (Please remember to factor in your broker’s pip-spread).

Please note that this Fibonacci (fib.) level also has a Weekly pivot, an overlapping fib supporting it.

Please keep your risk low. Don’t risk more than 2% of your capital. Personally, I risk about 0.5% per trade; and each trade has a potential profit target of 1% or more – based on my exit levels.
We MUST NEVER assume we KNOW where price is going next!

P.S.:
Always keep in mind any major news releases. Be wary of possible price volatility during these periods.