How to trade the next Bullish Move on GBP/USD?
Good morning traders. Today we want to share our analysis of the GBP / USD pair with you, along with an idea of a trade that can happen in the short term.
🔸First of all, to speak of context, we see that the price is in a clear uptrend on the Daily Chart. We can see this by drawing the Ascending Trendline and cloning at the top, which forms the Ascending Channel.
🔸All Resistance zones along the way have been broken. During the last weeks, the price was in a corrective period, but we consider that it is already finished.
🔸The reason why we consider that is because if we go to a lower timeframe, we can see how the corrective structure formed a clear A-B-C pattern.
🔸The trend line of the correction was broken to the upside, which is an indication that the trend may be continuing.
🔸To have a slightly safer scenario, and to avoid this being a fakeout, we consider that the optimal place to look for a trade is above wave B, since it is the previous high, and, if this level is broken, the price would be giving us a fairly clear signal of the upward movement.
🔸First of all, to speak of context, we see that the price is in a clear uptrend on the Daily Chart. We can see this by drawing the Ascending Trendline and cloning at the top, which forms the Ascending Channel.
🔸All Resistance zones along the way have been broken. During the last weeks, the price was in a corrective period, but we consider that it is already finished.
🔸The reason why we consider that is because if we go to a lower timeframe, we can see how the corrective structure formed a clear A-B-C pattern.
🔸The trend line of the correction was broken to the upside, which is an indication that the trend may be continuing.
🔸To have a slightly safer scenario, and to avoid this being a fakeout, we consider that the optimal place to look for a trade is above wave B, since it is the previous high, and, if this level is broken, the price would be giving us a fairly clear signal of the upward movement.