Hi friends,
I found a potential opportunity to go long on GBPUSD, based purely on technicals only.
On the chart:
- The price has found support at the 0.5 fib level. This fibonacci retracement was drawn from 1.43840 down to 1.19100.
- We also see the price wicked down and bounced off the blue trend line below which is a support trend line drawn from Jan 2017 to present day.
- Also see how price has also found support at the 400MA on the daily TF (purple line).
- Looking at the indicators below, we see a bullish divergence on both the CMF and the RSI, my two favorite indicators for spotting divergences.
Now you might have noticed the price found resistance at the descending red trend line, which has yet to be broken. I think the odds are in favor of the bulls to break this trend line, however if you want to be careful then wait until this line is broken before going long!
If we get the bullish move up, my first target to be taking profit will be at the .236 fib level (dotted black line).
After breaking that as well, then I expect price to reach the 0.382 fib level (dotted black line) where this price range has been solid resistance in the past.
If this happens, we could be seeing the beginning of a head&shoulders formation with this bullish movement making up the right shoulder.
Thanks for taking the time to read my analysis, please like if you find it useful!
I found a potential opportunity to go long on GBPUSD, based purely on technicals only.
On the chart:
- The price has found support at the 0.5 fib level. This fibonacci retracement was drawn from 1.43840 down to 1.19100.
- We also see the price wicked down and bounced off the blue trend line below which is a support trend line drawn from Jan 2017 to present day.
- Also see how price has also found support at the 400MA on the daily TF (purple line).
- Looking at the indicators below, we see a bullish divergence on both the CMF and the RSI, my two favorite indicators for spotting divergences.
Now you might have noticed the price found resistance at the descending red trend line, which has yet to be broken. I think the odds are in favor of the bulls to break this trend line, however if you want to be careful then wait until this line is broken before going long!
If we get the bullish move up, my first target to be taking profit will be at the .236 fib level (dotted black line).
After breaking that as well, then I expect price to reach the 0.382 fib level (dotted black line) where this price range has been solid resistance in the past.
If this happens, we could be seeing the beginning of a head&shoulders formation with this bullish movement making up the right shoulder.
Thanks for taking the time to read my analysis, please like if you find it useful!
Comment:
Price is struggling to break the descending red trend line. Let's see if it can break it before going long on this.
Order cancelled:
Stop loss hit.