Description:
The GBP/USD pair has shown a significant breakthrough of structure on the weekly timeframe, forming a new high. However, a retracement occurred last week, which resulted in a strong rejection from the demand area. This rejection contributed to the break of structure on the weekly timeframe.
Upon analyzing the daily timeframe, we can observe that the price has approached the demand area that played a crucial role in the weekly structure break. The strong rejection witnessed on the weekly timeframe indicates a resumption of buying pressure in the market.
Considering these factors, we should anticipate GBP/USD to continue its buying momentum from the Previous High of the Day (PHOD), Low of the Day (LOD), and Previous Low of the Day (PLOD) levels. These levels serve as potential buying areas for traders, with the aim of targeting the nearest highs.
However, it is essential to monitor the price movement closely. In the event that GBP/USD breaks below these levels, it would signify a significant presence of selling pressure on the downside.
Disclaimer: This analysis is based on historical price data and indicators. Please conduct your own research and consider other factors before making any trading decisions.
The GBP/USD pair has shown a significant breakthrough of structure on the weekly timeframe, forming a new high. However, a retracement occurred last week, which resulted in a strong rejection from the demand area. This rejection contributed to the break of structure on the weekly timeframe.
Upon analyzing the daily timeframe, we can observe that the price has approached the demand area that played a crucial role in the weekly structure break. The strong rejection witnessed on the weekly timeframe indicates a resumption of buying pressure in the market.
Considering these factors, we should anticipate GBP/USD to continue its buying momentum from the Previous High of the Day (PHOD), Low of the Day (LOD), and Previous Low of the Day (PLOD) levels. These levels serve as potential buying areas for traders, with the aim of targeting the nearest highs.
However, it is essential to monitor the price movement closely. In the event that GBP/USD breaks below these levels, it would signify a significant presence of selling pressure on the downside.
Disclaimer: This analysis is based on historical price data and indicators. Please conduct your own research and consider other factors before making any trading decisions.