After the impressive bullish bar on the 4-hour time frame the GBP/USD pair formed a double bottom with the second low being only 0.9 pips higher than the first, as well as a doji bar on the same time frame, after which it started moving up again.
At the moment the pair is caught between two trendlines – the blue one of the bearish trend that began on 6th September 2016 and the red one of the move on the upside that began on 26th September 2016.
The impressive doji bar on the four-hour time frame has closed right on the resistance trendline.
Now we need to be careful and to watch the pair closely to see whether it will succeed in remaining above the resistance it broke above or will it retrace back below that level.
In case the pair does succeed in rebounding from the trendline it broke above, which in this case will have turned into a support, we will see another move to the upside towards 1.3050 - 1.3080.
In the alternate scenario, in my opinion, there will be a drop towards 1.2870 – 1.2850.
Thank you for the detailed analysis.
ReplyDeleteVery helpful analysis.
ReplyDeleteValuable information! Thanks.
ReplyDeleteGood post.
ReplyDeleteUseful information, thanks!
ReplyDeleteHelpful analysis!
ReplyDeleteOverall downtrend continues.
ReplyDeleteVery helpful and insightful analysis, excellent.
ReplyDeleteGood review!
ReplyDelete