GBP/USD Bullish Price Action Projection
In this analysis I have used the consolidation price range from
1.19048 to 1.27747 to demonstrate future price levels after
price broke out.
Adding it above one another four times it reaches slightly
beyond the 61.8% Fib retracement drawn from 1.71915 to
1.19048. In addition, measuring the Fibo extension from
1.19048 to the consolidation high of 1.27747, gives
significant resistance levels at the 1.618, 2.618 and 3.618
extension levels.
Currently price is struggling to break the 2.618 Fib
extension at the 1.4182 level. If you look on the daily time
frame there is a double top that formed, and it is valid as
indicated on the chart by the red arrow. A re-test of the
1.618 Fib extension level, and possibly until the measured
objective at 1.3074 below are likely.
If price finds support in the region between 1.3312 and
1.3074 then price should have enough momentum to break
and close above the 2.618 extension level. After that,
a possible re-test of the 1.3650/60 level before
continuing to the 1.5100/53 levels above.
Trade 1 Short (RvR ratio 2:1)
Entry: Close below 1.4018
S/L: 1.4490
T/P 1: 1.37117
T/P 2: 1.30743
Trade 2 Long (RvR ratio 2:1)
Entry: Close above 1.3660
S/L: 1.2807
T/P 1: 1.4548
T/P 2: 1.5365
For both trades S/L and risk management are up to the
individual trader, however, entry and T/P levels are
recommendable, at least on the weekly time frame.
Happy trading
In this analysis I have used the consolidation price range from
1.19048 to 1.27747 to demonstrate future price levels after
price broke out.
Adding it above one another four times it reaches slightly
beyond the 61.8% Fib retracement drawn from 1.71915 to
1.19048. In addition, measuring the Fibo extension from
1.19048 to the consolidation high of 1.27747, gives
significant resistance levels at the 1.618, 2.618 and 3.618
extension levels.
Currently price is struggling to break the 2.618 Fib
extension at the 1.4182 level. If you look on the daily time
frame there is a double top that formed, and it is valid as
indicated on the chart by the red arrow. A re-test of the
1.618 Fib extension level, and possibly until the measured
objective at 1.3074 below are likely.
If price finds support in the region between 1.3312 and
1.3074 then price should have enough momentum to break
and close above the 2.618 extension level. After that,
a possible re-test of the 1.3650/60 level before
continuing to the 1.5100/53 levels above.
Trade 1 Short (RvR ratio 2:1)
Entry: Close below 1.4018
S/L: 1.4490
T/P 1: 1.37117
T/P 2: 1.30743
Trade 2 Long (RvR ratio 2:1)
Entry: Close above 1.3660
S/L: 1.2807
T/P 1: 1.4548
T/P 2: 1.5365
For both trades S/L and risk management are up to the
individual trader, however, entry and T/P levels are
recommendable, at least on the weekly time frame.
Happy trading