Looking at the horizontal support levels (orange line) someone could easily say that price is breaking below current support and selling is our option. In my analysis this is a classic wash and rinse bar which is taking out stops hidden below previous lows before start climbing to the upside. Looking at the slope of price what we can say is that previous support (green sliding parallel) has stepped up - a sign that we do have a bullish context although it seems we are in a clear downtrend.
In addition to that we do have an oversold RSI which signals a potential end of current downmove.
This setup is one of my favourites and definately I am going long from current level with sl and tp as shown in the chart. In case it looks scary to you just wait for your favourite setup to complete at current level and buy GBPUSD.
In addition to that we do have an oversold RSI which signals a potential end of current downmove.
This setup is one of my favourites and definately I am going long from current level with sl and tp as shown in the chart. In case it looks scary to you just wait for your favourite setup to complete at current level and buy GBPUSD.
Comment:
Very soon price will reach our tp..! Move your stops at BE for a risk free trade in any case that we do see a total reverse.
Trade closed: target reached:
Wash and rinse on duty..!!
