In technical analysis, a distribution block is often viewed as a sign that the market is losing steam after a strong bullish trend. This can be an indication that the market is starting to correct itself, and that the trend may be reversing.
In the case of GBP/USD on the 4 hour timeframe, the price breaks below the distribution block and If then will retests the previous support, which has now become resistance, it could be a sign to consider a short order according to Plancton's strategy. This is because the retest of the former support level at a lower price could indicate that the market is not able to sustain its previous bullish trend and that the bears are now in control.
In the case of GBP/USD on the 4 hour timeframe, the price breaks below the distribution block and If then will retests the previous support, which has now become resistance, it could be a sign to consider a short order according to Plancton's strategy. This is because the retest of the former support level at a lower price could indicate that the market is not able to sustain its previous bullish trend and that the bears are now in control.
Comment:
bearish continuation
Comment:
after the drop the market is testing the support level
Comment:
new recent low and break of the 1.20 support
Comment:
a sweep over the support structure