Are you Trading GBP/USD? Be Careful with this Monthly Zone!
Good morning, everyone! Today we will analyze GBP/USD as it is very close to a massive resistance zone, and we want to show you our vision so that you take it into account.
🔸The chart that is published in the Monthly chart. It is a timeframe that is not widely seen in most analyzes, but it is of great importance, and we must always take it into account in long-term visions.
🔸In this timeframe, we can see practically all the historical behavior of the price. Thanks to this, we can detect this area of great relevance in this pair.
🔸For more than 20 years, the current price zone has been at a high supply and demand level. We can see that in each touch that was made, there was an important reaction. From 2000 to 2010, it acted as support, since every time the price faced, it generated an upward rebound. In 2016 it was penetrated downwards, and since then, it has worked as Resistance.
🔸The price has not reached this area for more than two years, and it is finally very close. From here, we propose two possible scenarios. In the event of a bullish breakout, it has a clear path to the next resistance zone at 1.17000. And, in the event of a bounce, we will probably see a pullback towards the broken trend line.
Our vision in the daily chart is the following:
🔸In this chart, we see how there is still a small upward path that the price can make towards the end of the zone. Once it gets there, we will wait to see the price action to define a more likely scenario. For the moment, we remain on the sidelines.
🔸The chart that is published in the Monthly chart. It is a timeframe that is not widely seen in most analyzes, but it is of great importance, and we must always take it into account in long-term visions.
🔸In this timeframe, we can see practically all the historical behavior of the price. Thanks to this, we can detect this area of great relevance in this pair.
🔸For more than 20 years, the current price zone has been at a high supply and demand level. We can see that in each touch that was made, there was an important reaction. From 2000 to 2010, it acted as support, since every time the price faced, it generated an upward rebound. In 2016 it was penetrated downwards, and since then, it has worked as Resistance.
🔸The price has not reached this area for more than two years, and it is finally very close. From here, we propose two possible scenarios. In the event of a bullish breakout, it has a clear path to the next resistance zone at 1.17000. And, in the event of a bounce, we will probably see a pullback towards the broken trend line.
Our vision in the daily chart is the following:
🔸In this chart, we see how there is still a small upward path that the price can make towards the end of the zone. Once it gets there, we will wait to see the price action to define a more likely scenario. For the moment, we remain on the sidelines.