GBPUSD - Potential Buy setup using convergence at 1.3200
Taking a look at the price action on GBPUSD we can see a potential level of support set up for a possible move higher at around the 1.3200 big figure.
As you can see from the 1 Hour chart, we have a possible convergence of factors that could increase the probability for a move higher.
The 1.3200 level being a big figure level in general is psychological level but what can help strengthen this point is the liquidity gap that was created by price spiking higher on the 28th August (marked with a pink arrow). These 2 factors alone could have additional order flow resting at this level which could cause a reaction in price higher.
Lastly, we can also see a descending diagonal trend line that could also meet at the same point if price starts to sell off currently, again increasing the probability of the level to react.
If price gets to this level and goes straight through it then no action is needed and the trade is void, but if we can see a bounce occur here we will go down to our lower time frames and see if we can find any additional signals like a bullish price pattern or structure that could help in fine tuning a possible execution point.
We will update this accordingly.
As you can see from the 1 Hour chart, we have a possible convergence of factors that could increase the probability for a move higher.
The 1.3200 level being a big figure level in general is psychological level but what can help strengthen this point is the liquidity gap that was created by price spiking higher on the 28th August (marked with a pink arrow). These 2 factors alone could have additional order flow resting at this level which could cause a reaction in price higher.
Lastly, we can also see a descending diagonal trend line that could also meet at the same point if price starts to sell off currently, again increasing the probability of the level to react.
If price gets to this level and goes straight through it then no action is needed and the trade is void, but if we can see a bounce occur here we will go down to our lower time frames and see if we can find any additional signals like a bullish price pattern or structure that could help in fine tuning a possible execution point.
We will update this accordingly.
Trade closed: target reached:
We can now see the the outcome to Fridays bullish call on GBPUSD as the level of support we projected held up well.
As you can see from the 1 Hour chart, price fell to the level of convergence we outlined above for a bullish move higher. We also had no candle close below the 1.3200 level which kept the trade in play before price lifted.
Since then price has moved just below the 1.3300 big figure which we are happy to scale out profits along the way.
As you can see from the 1 Hour chart, price fell to the level of convergence we outlined above for a bullish move higher. We also had no candle close below the 1.3200 level which kept the trade in play before price lifted.
Since then price has moved just below the 1.3300 big figure which we are happy to scale out profits along the way.