GBP/USD breaks 1.3850 resistance, 1.40 is the key now
Overview- Quite surprisingly, GBP/USD has managed to break through
the 1.3840 resistance level. However, the 1.40 area is still a resistance level and let
us analyze if selling at that level is plausible.
Analysis - From the chart, you can see that there is not much resistance
between the current price of 1.3912 and the next resistance level 1.40. There has been
multiple price rejections at this level indicated by the black arrows in my chart. So,
it goes without saying that the 1.40 level is a strong resistance.
Probable trade set-up - Based on the above analysis, if there is another
price rejection at 1.40 level and we can see some bearish candles in this area then
I will consider selling GBPUSD@1.40 with SL above resistance and TP at 1.3850.
Disclaimer - This is simply an analysis and not a trade recommendation. The trades will be
executed only if it meets the required criteria.
the 1.3840 resistance level. However, the 1.40 area is still a resistance level and let
us analyze if selling at that level is plausible.
Analysis - From the chart, you can see that there is not much resistance
between the current price of 1.3912 and the next resistance level 1.40. There has been
multiple price rejections at this level indicated by the black arrows in my chart. So,
it goes without saying that the 1.40 level is a strong resistance.
Probable trade set-up - Based on the above analysis, if there is another
price rejection at 1.40 level and we can see some bearish candles in this area then
I will consider selling GBPUSD@1.40 with SL above resistance and TP at 1.3850.
Disclaimer - This is simply an analysis and not a trade recommendation. The trades will be
executed only if it meets the required criteria.