GBP/USD: 2 possible long entries for a major reversal scenario
Several pairs could be on the verge of possible reversal imo, cable might be one of them. An alert was triggered earlier today so therefor this analysis!
The question is always: where will a possible reversal likely start...? Or where will this USD rally stop...?
I've identified 2 possible long entry levels, here they are:
Entry 1:
Just above the 1.5000 round level because:
- psych level in a previous structure S/R zone (blue rectangle)
- close to completion of a possible harmonic pattern
- L-H-LL-HH >>> Quasimodo support at previous low level?
Targets as in the chart.
Entry could be lower but then the risk of not getting in is bigger, everyone should make up their own choice based on their own analysis to choose the best entry for their trading style!
SL below 1.4900
Entry2:
In case USD will continue to rally (and rallies often last longer than expected...) and my SL is hit on the first trade:
Long at completion of a possible bullish bat. Targets as in the chart.
SL below the lowest low and major S/R zone (red rectangle)
The fact that we just broke a trendline might send this pair up to test that broken trendline (like on practically all previous occasions, look left on the chart!). I might enter a long now based on the fact that we saw some rejection of that blue S/R zone earlier today.
The question is always: where will a possible reversal likely start...? Or where will this USD rally stop...?
I've identified 2 possible long entry levels, here they are:
Entry 1:
Just above the 1.5000 round level because:
- psych level in a previous structure S/R zone (blue rectangle)
- close to completion of a possible harmonic pattern
- L-H-LL-HH >>> Quasimodo support at previous low level?
Targets as in the chart.
Entry could be lower but then the risk of not getting in is bigger, everyone should make up their own choice based on their own analysis to choose the best entry for their trading style!
SL below 1.4900
Entry2:
In case USD will continue to rally (and rallies often last longer than expected...) and my SL is hit on the first trade:
Long at completion of a possible bullish bat. Targets as in the chart.
SL below the lowest low and major S/R zone (red rectangle)
The fact that we just broke a trendline might send this pair up to test that broken trendline (like on practically all previous occasions, look left on the chart!). I might enter a long now based on the fact that we saw some rejection of that blue S/R zone earlier today.
Comment:
Weekly timeframe could suggests that, in case we get a bullish reversal, the up move could be BIG!
Trade active:
SL missed by pips..., now at BE to be safe..., up now please...
