Price is at an interesting point currently on the GBPUSD 1H Chart, sitting at a local support level.
A break of the local support level would warrant movement towards TP Zone 1.
A bounce off the support level would see price move to the Resistance Level. At the resistance level price may then breakout yet again and travel towards the Long TP Zone. However, we believe it is more likely to bounce back downwards, creating an M pattern and continuing along its downtrend.
There are many trading opportunities here.
A break of the local support level would warrant movement towards TP Zone 1.
A bounce off the support level would see price move to the Resistance Level. At the resistance level price may then breakout yet again and travel towards the Long TP Zone. However, we believe it is more likely to bounce back downwards, creating an M pattern and continuing along its downtrend.
There are many trading opportunities here.
Trade active:
Price is trying to bounce off the Support Level currently.
Executing long trade towards initial TP, with SL just below the Support Level.
Executing long trade towards initial TP, with SL just below the Support Level.
Trade closed: target reached:
Our long trade reached the take profit hitting the resistance level as we planned.
Now assessing price action to see if we trade a breakout long, or an M pattern forms for a short play.
Now assessing price action to see if we trade a breakout long, or an M pattern forms for a short play.
Trade active:
GBPUSD has rejected the resistance level and is looking to break back through Support to head towards TP 1, following the M pattern.
Execute Short trade with SL just above resistance and TP at TP Zone 1.
Execute Short trade with SL just above resistance and TP at TP Zone 1.
