Hi, today we are going to talk about GBPUSD (British Pound / U.S. Dollar) and its current landscape.
We observe that the asset is in a key point of reflexion about the next movements. Before the breakout of these important supports and resistances, It's essential to be cautious, always watching the cost-benefit of both trades. Since bellow this vertical support, we have strong horizontal support. In a bearish scenario, the breaking of those supports would be of a huge preponderance to us opening a massive short. A movement like this would be free of lows to act as supports, that's why the Bulls are so strong defending.
However in the bullish perspective, with the breaking of the Downtrend line, the bulls would gain traction and would have a path to the compensator (61% of Fibonacci of the bearish wave), where possibly the bears would structure a strong defense.
Thank you for reading and leave your comments if you like.