Good Morning traders! Today we will analyze GBP/USD, as it is presenting a bullish opportunity for the short term.
We are going to analyze the technical aspect of this chart:
🔸First of all, we see that the bearish trend was broken (descending channel). This is the first reason why we are going to look for a bullish position.
🔸Since the breakout, the price remained in a consolidation. What we observe now is that the corrective pattern completed an A-B-C type correction.
🔸To add to the previous points, the structure is making a throwback to the broken trend line.
🔸Also, the price is facing a demand zone in a lower timeframe.
Conclusion: we have many points that converge in a potential bullish movement in the short term, increasing the chances of this. To add a bit of security in this trade, we consider that the optimal point to enter the market is above wave B, since in this way, we avoid a fakeout of the structure if it happens.
Of course, we must not forget that it is just another trade and that the chances of it failing ALWAYS exist.
We are going to analyze the technical aspect of this chart:
🔸First of all, we see that the bearish trend was broken (descending channel). This is the first reason why we are going to look for a bullish position.
🔸Since the breakout, the price remained in a consolidation. What we observe now is that the corrective pattern completed an A-B-C type correction.
🔸To add to the previous points, the structure is making a throwback to the broken trend line.
🔸Also, the price is facing a demand zone in a lower timeframe.
Conclusion: we have many points that converge in a potential bullish movement in the short term, increasing the chances of this. To add a bit of security in this trade, we consider that the optimal point to enter the market is above wave B, since in this way, we avoid a fakeout of the structure if it happens.
Of course, we must not forget that it is just another trade and that the chances of it failing ALWAYS exist.