GBPUSD could be at heading to a strong support zone on the Daily timeframe, 3 confluence points.
1. The channel has been forming from Sept 2020 and price has been respecting it on D1
2. The 50EMA further provides the confirmation of a strong support within this channel
3. GBP is on an uptrend with downward pressure on the USD
I will be looking for entry when price interacts with the 50EMA with the SL being at the bottom of the channel, this will provide a great Risk:Reward ratio (1:7) when the trade works, as usual I will be risking only 1% of my Equity which suits my (personal) risk tolerance.
The grey zone is a strong resistance on the weekly, thus the profit target slightly below the zone.
Would love to hear your thoughts.
1. The channel has been forming from Sept 2020 and price has been respecting it on D1
2. The 50EMA further provides the confirmation of a strong support within this channel
3. GBP is on an uptrend with downward pressure on the USD
I will be looking for entry when price interacts with the 50EMA with the SL being at the bottom of the channel, this will provide a great Risk:Reward ratio (1:7) when the trade works, as usual I will be risking only 1% of my Equity which suits my (personal) risk tolerance.
The grey zone is a strong resistance on the weekly, thus the profit target slightly below the zone.
Would love to hear your thoughts.
NO BMS NO ENTRY