GBP/USD approaching historical resistance, may reverse soon
Overview- GBP/USD is in a relentless uptrend and currently price is very close
to the 3 year old highs set at 1.4350 level. Once it touches this historical resistance,
GBP/USD may correct lower significantly.
Analysis - As price is approaching a strong resistance area as I have marked in
my chart, there is a big probability of a reversal here. GBP/USD is also very much extended
from it's 100-day Moving average, which indicates that the bullish move is running ahead of itself.
So, once we get some bearish daily candles in the resistance level, we can think about taking some
short positions in the market.
Probable trade set-up - Based on the above analysis, sell orders between 1.43-1.4380
with SL above the resistance area and TP at 1.40 may be executed if bearish price action is formed
at the resistance level.
Disclaimer - This is simply an analysis and not a trade recommendation. The trades will be
executed only if it meets the required criteria.
to the 3 year old highs set at 1.4350 level. Once it touches this historical resistance,
GBP/USD may correct lower significantly.
Analysis - As price is approaching a strong resistance area as I have marked in
my chart, there is a big probability of a reversal here. GBP/USD is also very much extended
from it's 100-day Moving average, which indicates that the bullish move is running ahead of itself.
So, once we get some bearish daily candles in the resistance level, we can think about taking some
short positions in the market.
Probable trade set-up - Based on the above analysis, sell orders between 1.43-1.4380
with SL above the resistance area and TP at 1.40 may be executed if bearish price action is formed
at the resistance level.
Disclaimer - This is simply an analysis and not a trade recommendation. The trades will be
executed only if it meets the required criteria.
