For my previous post and context see previous post below:
Price tested the upper structure line and I'll be focused on the next break out either bullish or bearish. I think we might see some bullish continuation to at least close the gap. However I trade what I see and like to see a consolidation first before opening a new trade.
moving as projected, we saw the break and I expect a move towards 1.435.
Comment
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Comment
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We saw another impulse higher, watch for a consolidation and if we see a continuation buy GBPUSD towards minimum target at 1.435.
Trade closed: target reached
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The Pound made the move higher towards the target zone and even overshoot it. I will update this pair later when I spot another trading opportunity. We had a nice run and the Risk/Reward was almost 10/1 from the original entry with several opportunities to add. These kind of trades and profit show why you can wait for the perfect trade. Have a nice weekend all.
Comments
glaazie
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really good analysis Tim could learn a lot from you :)
glaazie
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my trend line isn't broken yet it bounced off a bit can you explain why you expect the gap to be filled is it because they always do ? or you think gbpusd need to retrace to that level 1.435
TimStuyts
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The trend line is only to visualize the structure in my analysis. But good that you ask! However key is the impulse higher from the projected price zone shown by means of the yellow rectangle in the original chart. 1.435 is not only the level that will close the gap but also 127% Fibonacci of last weeks range. Don't get biased by the levels, I mention these levels for management purposes, however structure is key and market dynamics are a tool for me (like how a pair tend to move compared with previous weeks/months). So if we see a consolidation on lower time frames we should be looking for a buy continuation higher. Nevertheless if price reverses fast and starts unfolding in a sideways consolidation after a bearish move, the structure might change and might turn bearish again. I just updated the GBPUSD to visualize how I came up with the likely target if it continues higher. You are right about that upper trend line and price could reverse, however I will focus on structure so lets see what's next. My stop loss is at break-even.
glaazie
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i think bullish continuation is over i see a nice bearish diverergence on the macd
TimStuyts
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Yes that could be, the indicator shows a warning that the bullish momentum might be over for now. Structure is leading so let's see whether we see another extension higher or a consolidation that presents a sell trade. I'll update later on today.
glaazie
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thnx mate really appreciate your input
glaazie
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Thanks Chief very informative :)
TimStuyts
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You're welcome, thanks for asking. Helps to make my analyses better to understand for everyone.