GBPUSD: 4hr long (122 pips) - 1hr retracement (25 pips)

GBPUSD GBPUSD

The overall trend is LONG. You may catch a 25/30 pip SHORT retracement back to the 50% / 61.8% retracement levels.

Analysis:

Daily:
1. 14 day downtrend seemed to have ended as price found support around support found around 1.2605.
2. Bullish pinbar formed and closed with a long wick rejecting lower prices.
3. Bullish candle now in play.

4HR:
1. Price broke daily downtrend line.

1HR:
1. Price broke below area 1 and pushed back up through the downward trend line finding support at area 1.
2. Price pushed through area 2 and back at area 1 where it found support then pushed through area 2 once more and rejecting the daily resistance.

Take profit:
50% and 61.8% fib levels

Re-entry (long)
50% and 61.8% fib levels after short move is completed and price action provides a signal.

Other possibilities:
Price may continue higher without the retracement as it was already rejected by the daily resistance.
Price may be rejected by the daily resistance and break the upward trend line and continue downward.

NOTE:
Indicators follow price, price does not follow indicators. The indicators are to be used to give a visual of what the price is doing.
Indicators are applied to the chart as a final step after technical analysis is complete. GBPUSD