GBPUSD Trade Idea - Short-term Rally or Long-Term Trend Shift?
GU has been on a healthy downtrend since May 2022, when price peaked at, formed a Double-Top rejected 1.42, since then priced has plummeted over 2000+ pips, the recent low was 1.2160.
I’ve been following the sells until 1.2180 area when i noticed some indecision & roll-over on GU, i’ve then turned short-term bullish when price formed higher low on the LTF structure at 1.2230 price area.
In yesterday's analysis, i talked about potential long setup towards 1.2610 (price was at 1.2490), now we got the first push towards 1.2560. The key to determine whether is this a mid to long-term bullish reversal or just some healthy pullbacks, is to observe the Price Response around 1.2610. Once price shows more strength breaking above 1.2610, the next resistance structure is going to be 1.30 area.
Until price breaks above 1.2610 we can't confirm the reversal yet. However, if price suddenly collapse out of nowhere, it hints you the amount of selling pressure that is defending the highs.
Mid to Long-term bullish reversal criteria:
1. 18ema hold above 50ema on the 4h chart
2. Price constantly putting in new highs (doesn't matter how much of a difference the highs are, as long as price shows strength holding higher price)
3. The recent low at 1.2340 MUST not be broken
4. A solid break above 1.2610 will validate the setup
Always perform your own analysis and only use this as an educational material. Trade safe and take care.
Do not forget to like if you enjoy the content, and share with someone who'd enjoy reading this.
I’ve been following the sells until 1.2180 area when i noticed some indecision & roll-over on GU, i’ve then turned short-term bullish when price formed higher low on the LTF structure at 1.2230 price area.
In yesterday's analysis, i talked about potential long setup towards 1.2610 (price was at 1.2490), now we got the first push towards 1.2560. The key to determine whether is this a mid to long-term bullish reversal or just some healthy pullbacks, is to observe the Price Response around 1.2610. Once price shows more strength breaking above 1.2610, the next resistance structure is going to be 1.30 area.
Until price breaks above 1.2610 we can't confirm the reversal yet. However, if price suddenly collapse out of nowhere, it hints you the amount of selling pressure that is defending the highs.
Mid to Long-term bullish reversal criteria:
1. 18ema hold above 50ema on the 4h chart
2. Price constantly putting in new highs (doesn't matter how much of a difference the highs are, as long as price shows strength holding higher price)
3. The recent low at 1.2340 MUST not be broken
4. A solid break above 1.2610 will validate the setup
Always perform your own analysis and only use this as an educational material. Trade safe and take care.
Do not forget to like if you enjoy the content, and share with someone who'd enjoy reading this.
