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Long

GBPUSD - 2016 begins near a key technical support, will it hold?

FX:GBPUSD   British Pound/U.S. Dollar
209 3 10
Greetings Fellow Traders,

GBPUSD             has been in a pretty extensive correction/consolidation mode for several months now. We've seen a couple false break outs and channels been ever so slightly redrawn - but it has stayed true to the overall structure. Pay key attention to the strength of the larger trend lines on the chart above and apply that strength to previous swing highs, you'll begin to see what I mean.

At the end of 2015 we saw GBPUSD             confirm a break of the lower support on it's most recent support beginning in early to mid December, there are 2 things I want to point out for this. The trend line that was broken was already in the direction of the 'recent' movements which means in order for this new trend to sustain itself it will have to explode in that direction. The main problem I see with this is that with just over 100 pips from current price levels... GBPUSD             has it's 2015 yearly lows it hasn't seen since March.

I will be personally looking for signs of a bullish reversal near these yearly lows (we're not quite there yet) or for the current bearish strength to be broken as indicated on the chart.

On the flip side, it is possible that the yearly lows fail to hold, should this be the case I will look for a more accurate determinant of the important support level when price gets there, monitor the consolidation and trade the break out. I'm not comfortable looking for sells with the yearly support as close to price as it is.

Feel free to comment/like/follow. Let's ring in the new year!
very nice
+1 Reply
Synapse PooyaSalehipour
Thanks for the feedback. I looked at your charts as well. I think you have the right idea long term, but I will wait for more confirmation that buyers are actually coming into the market to stay and not just temporarily.
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Thanks. Check at the history. We don't have 9 DAY bearish candle in past 3 years, It could be move up. Thats why i buy Gbp for next week.
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