On the daily chart, we can see that as of late May, we've been on a moderate downtrend from around 156, heading towards the 149 area, however, since October we've seen buyers take back control, pushing the price up back to resistance in the 156/157 region. After just tapping into 158 we've experienced what looks like a healthy correction. What does this mean for traders looking for opportunities?
Judging from the fact that we now have a new higher high and higher low, we might be looking for *more* confluences to the upside, especially since we haven't quite fallen back into a bearish trend.
Alternatively, if we break below the short-term support of 152, we might be looking towards a lower momentum towards long-term strong support in the 148 area.
Personally, judging from the fact that sellers have failed to build enough momentum to break below 148 more than four times, to me it suggests that there is not enough volume in bearish market participants to create a strong downtrend, suggesting that we might simply be looking at an opportunity to open a position in the pound at a relatively cheap price.
Judging from the fact that we now have a new higher high and higher low, we might be looking for *more* confluences to the upside, especially since we haven't quite fallen back into a bearish trend.
Alternatively, if we break below the short-term support of 152, we might be looking towards a lower momentum towards long-term strong support in the 148 area.
Personally, judging from the fact that sellers have failed to build enough momentum to break below 148 more than four times, to me it suggests that there is not enough volume in bearish market participants to create a strong downtrend, suggesting that we might simply be looking at an opportunity to open a position in the pound at a relatively cheap price.