On the 2-hour chart for GBP/USD, we're nestled right at a crossroads. The pair's just broken through a constraining pattern, possibly a wedge or flag – these are typically continuation patterns, and given the recent uptrend, the bias might just stay bullish.
The 21 EMA is hugging the price, suggesting it’s undecided whether to keep climbing or take a breather. For an upward trajectory, the current position is precarious – we're testing the 21 EMA for support. If it holds, bulls could drive the price toward weekly resistance marked around 1.2894.
Entering now? It's a tightrope walk. Wait for a decisive candle above the 21 EMA to confirm bullish intent. If the price maintains above this level, consider it a green light for a potential ride up. Keep a close watch, though; any dips below could switch the signal to red, and you'll want to step aside.
Target that weekly resistance but play it savvy with a stop-loss tucked below the 21 EMA, ensuring you're not caught off guard by a false break.
The 21 EMA is hugging the price, suggesting it’s undecided whether to keep climbing or take a breather. For an upward trajectory, the current position is precarious – we're testing the 21 EMA for support. If it holds, bulls could drive the price toward weekly resistance marked around 1.2894.
Entering now? It's a tightrope walk. Wait for a decisive candle above the 21 EMA to confirm bullish intent. If the price maintains above this level, consider it a green light for a potential ride up. Keep a close watch, though; any dips below could switch the signal to red, and you'll want to step aside.
Target that weekly resistance but play it savvy with a stop-loss tucked below the 21 EMA, ensuring you're not caught off guard by a false break.
Sheena Lynne