It doesn't take a chart expert to see that the gbpusd is in a down trend, but there could be an excellent opportunity to go long on this pair. As you can see price action was making lower highs but the stochastic was making higher highs, this is a bullish setup. When you see this, it means with a high probability that the next leg down will be a bottom. Then the next leg down we get lower lows in price, but lower highs on the stochastic, which is classic divergence. These two things in and of themselves is not enough for me to go long, but i will be looking on the 1 hour chart this week for trend continuation setups to go long. "The market always wants to hurt the most people, and right now i hear everyone saying to short this pair."
Comment:
i will be looking to go long on the 1hr time frame around 1.4270's.
Trade active:
Decided to wait until price action came back down to support. Went long at 1.4180.
