Two possible directions on a key area / GBPUSD
Today we will make a two timeframes analysis on GBPUSD; the idea is to understand possible directions based on the current level.
Weekly Chart:
On the weekly chart, we want to pay attention to two levels. a) The descending trendline that comes from 2008 and b) the Resistance zone at 1.35000. Those two levels combined create a key level to pay attention to either for a strong reversal or for a breakout of the descending trend towards new Highs. We will better understand this on the Daily Chart.
Daily Chart:
From this level we are right now, we can make two medium-term forecasts. IF the price breaks above the green line, it's a great situation to start looking for long setups towards the next resistance zone.
IF the price breaks below the red line, it's a great signal to start looking for short setups towards the weekly support zone.
Remember that analyses are like maps, which are a guide that should help you understand the place you are right now, and based on them, you can create setups on specific zones or areas based on your strategy.
Weekly Chart:
On the weekly chart, we want to pay attention to two levels. a) The descending trendline that comes from 2008 and b) the Resistance zone at 1.35000. Those two levels combined create a key level to pay attention to either for a strong reversal or for a breakout of the descending trend towards new Highs. We will better understand this on the Daily Chart.
Daily Chart:
From this level we are right now, we can make two medium-term forecasts. IF the price breaks above the green line, it's a great situation to start looking for long setups towards the next resistance zone.
IF the price breaks below the red line, it's a great signal to start looking for short setups towards the weekly support zone.
Remember that analyses are like maps, which are a guide that should help you understand the place you are right now, and based on them, you can create setups on specific zones or areas based on your strategy.