GBP/USD Possible Bullish Trend Continuation from 1.2900 Level
GBP/USD reached a very crucial and decisive level this week
despite giving back 'almost' all it's gains on Friday.
The 1.3299 high of Thursday hit the bottom of the primary
support trend line formed in January, 2017. This could be
seen as a case of support to resistance, however, if you look
at the yellow highlighted area on the chart you will notice
that there is still hope for bulls as long as price does not close
below the 1.2900 level.
Note also where price closed this week, namely, at 1.3077
just above the second trend line cross over level formed by
the secondary resistance and support trend lines. The
first trend line cross over level is formed by the intersection
of the primary and secondary trend lines at 1.2987, which
is where the 50SMA is at currently.
The 1.2900 level is also key and a highly likely level for a
bullish trend continuation because it is a Fibonacci
confluence zone, both the 61.8% retracement from
1.1986 to 1.4377 and 1.2662 to 1.3299 are just 6 pips apart,
and the monthly pivot point is also almost exactly at that level, too.
I have included a potential bullish AB=CD pattern as a
trade idea:
Entry: Close above 1.2900
S/L: 1.2790
T/P: 1.3545
As always, scale out your profits and adjust your stop/loss
to suit your personal risk management profile.
Happy trading
despite giving back 'almost' all it's gains on Friday.
The 1.3299 high of Thursday hit the bottom of the primary
support trend line formed in January, 2017. This could be
seen as a case of support to resistance, however, if you look
at the yellow highlighted area on the chart you will notice
that there is still hope for bulls as long as price does not close
below the 1.2900 level.
Note also where price closed this week, namely, at 1.3077
just above the second trend line cross over level formed by
the secondary resistance and support trend lines. The
first trend line cross over level is formed by the intersection
of the primary and secondary trend lines at 1.2987, which
is where the 50SMA is at currently.
The 1.2900 level is also key and a highly likely level for a
bullish trend continuation because it is a Fibonacci
confluence zone, both the 61.8% retracement from
1.1986 to 1.4377 and 1.2662 to 1.3299 are just 6 pips apart,
and the monthly pivot point is also almost exactly at that level, too.
I have included a potential bullish AB=CD pattern as a
trade idea:
Entry: Close above 1.2900
S/L: 1.2790
T/P: 1.3545
As always, scale out your profits and adjust your stop/loss
to suit your personal risk management profile.
Happy trading