Abu-Sushi

GBPUSD has broken a big downtrend .. ( bullish long term )

FX:GBPUSD   British Pound / U.S. Dollar
Hello everyone this is my idea for GBPUSD on daily time frame ..

Just few things to keep in mind long term structure is bullish because on weekly time frame price has broken a big downtrend
trend line and now this trend line is holding as strong support as show in the chart below same time in the RSI indicator
price has broken the downtrend .. long term in the chart our target is 1.618 Fib as long as black line which is the broken downtrend
hold as support meaning no weekly close below this line ..

Now lets resume our analysis on our main chart on daily time frame and what we can do ..
we have one last resistance before moving to our target on weekly time frame ..
which is the red line .. price need to close above red line and it need to hold as support to move to higher targets ..
Notice same time in the RSI indicator price is still trading between this two black line need a clear breakout
to know the trend direction ..

now we can discuss what trade setups we have for bulls or bears .. based on this chart
obviously blue line was broken and now should act as support

For bulls ( buying thesis)
We want price to close above red line .. to buy for our long term target as long as red line hold as support ( no daily close below )
We can buy from blue line to target red line as long as ( no daily close below blue line )
We can buy from green line to target blue line as long as ( no daily close below green line )

For bears ( selling thesis )
We wanna sell from red line to target blue line ( as long as no daily close above red line )
We wanna sell if price close below blue line to target green line ( as long as no daily close above blue line )

Personally I sold small size to target blue line since there is a small rejection from last candle ..
but overall trend is very bullish because of weekly time frame as I pointed in the chart ..

for any question feel free to ask :)




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