GBP at an obvious but strange resistance level
Currently on the 1D chart of GBPUSD we can see that GBP is back to an obvious support/resistance level at 1.4241 that area has first formed in 2010. The support and resistance has proven itself 4 times since 2010.
The strange strange part is that the volume traded at this area isn’t that much for such a obvious support and resistance level…
The resistance level back in 2009 (around 1.34606) is stronger and has traded around fourth the volume. In 2020 the level has acted as a resistance throughout the year. It has dropped quite a bit and long during the Brexit and pandemic.
Only the Brexit and Corona pandemic were able to crack below it and this was the lowest low for GBPUSD, as far as I can see from the TradingView data :D Until now it is recovering again.
My take on this is that it won’t form a double top again like in April 2018 and will most probably consolidate for a few days or a week before it breaks out of that area. The buyers are strong and the volume is backing it up.
That give me a long bias on GBPUSD. I still wait for some more confirmations before going for some swings on a lower timeframe chart.
Let me know what you think.
Happy trading and all the best.
hooolymoooly
The strange strange part is that the volume traded at this area isn’t that much for such a obvious support and resistance level…
The resistance level back in 2009 (around 1.34606) is stronger and has traded around fourth the volume. In 2020 the level has acted as a resistance throughout the year. It has dropped quite a bit and long during the Brexit and pandemic.
Only the Brexit and Corona pandemic were able to crack below it and this was the lowest low for GBPUSD, as far as I can see from the TradingView data :D Until now it is recovering again.
My take on this is that it won’t form a double top again like in April 2018 and will most probably consolidate for a few days or a week before it breaks out of that area. The buyers are strong and the volume is backing it up.
That give me a long bias on GBPUSD. I still wait for some more confirmations before going for some swings on a lower timeframe chart.
Let me know what you think.
Happy trading and all the best.
hooolymoooly
Happy trading and all the best!
hooolymoooly
hooolymoooly