Several factors pointing to a potential appreciation in the pound, setting up a nice long bias position.
Price is testing a 5 month trend line and showing signs of bouncing off it nicely
Price is testing a fresh demand level which also aligns with the trend line
there is a fibonacci cluster in the demand zone as well
With the above factors lining up in the same tight zone, I consider this a high probabilty trade setup with risk below the demand zone and a target at the next supply zone for a 3:1 reward:risk ratio setup.
Additionally, The US dollar index is reaching a key supply zone and trend line resistance and showing signs of exhastion, if it ends up depreciating in price, expect an appreciation in the major currency crosses.
Price is testing a 5 month trend line and showing signs of bouncing off it nicely
Price is testing a fresh demand level which also aligns with the trend line
there is a fibonacci cluster in the demand zone as well
With the above factors lining up in the same tight zone, I consider this a high probabilty trade setup with risk below the demand zone and a target at the next supply zone for a 3:1 reward:risk ratio setup.
Additionally, The US dollar index is reaching a key supply zone and trend line resistance and showing signs of exhastion, if it ends up depreciating in price, expect an appreciation in the major currency crosses.