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drilonn001

Short term bullish momentum on the GBPUSD

Long
British Pound / U.S. Dollar (FX:GBPUSD)  
drilonn001 Updated   
FX:GBPUSD   British Pound / U.S. Dollar
Trend Analysis Chart Patterns
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0
trendanalysis chartpattern
The overall market bias on the GBPUSD in the last couple of weeks is bearish. The bears were stronger until the price reached the M_S1 where the bulls kicked in and pushed the price up. We see a nice bullish engulfing pattern on the daily chart, which is formed exactly at the support area so we believe that the bulls will keep the momentum of the move at least to the M_PP. As this trade is counter trend trade, we will be paying very close attention and use proper risk and lot size in case we decide to open a long trade.
Comment:
As we can see from the daily price action on the GBPUSD chart, the price is moving slowly on the upside, validating the expected retracement based on the support at M_S1 and bullish engulfing candle formation, so we are still looking for a move up to the M_PP at 1.32417.
Comment:
As expected from the pattern of bullish engulfing candle formed on last Friday, we had a nice up move nearly reaching the M_PP where our target was. The structure at M_PP will be a key level for Sunday Analysis as we expect now that it serves as resistance for further down move.
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