GBPUSD - Correction before Trend Continuation
Hi Traders!
The market is in an overall Uptrend.
Here is our multiple timeframe analysis for this pair.
Let's start with the Weekly:
As you can see we are here moving in an ascending Parallel Channel.
In addition, there are two important key Levels. Firstly the Supprot at 1.20.
Secondly the Resistance at 1.34, where the market is at the moment.
The pink dotted line is a former Trendline which is now unvalid.
It just shows the current bullish power for GBP.
Now we continue with the Daily:
As said before, the market is at Resistance.
Additionally it is moving in a Wedge.
Because the wedge has a steep Trendline, we expect the market to break out of it
before it makes its next upturn.
The main target is the lower Trendline of the weekly Parallel Channel.
After that, the expection is a Trend Continuation, because of its bullish power.
Going on to the H4:
Here you can see the Daily Wedge again.
Furthermore, there are a Support and Resistance Levels here.
It is possible, that the market starts to range.
Lastly, let's take a look to the Entry Timeframe:
Now we are going to analyse the Entry with this template:
A: The overall Trend is an Uptrend, but it needs a correction to move further.
The Trend of the Entry Timeframe is sidewards.
That's why it is legit to short the market.
B: We are doing our MTFA at this particular moment.
C: Never break your rules.
1.: The structure Levels are:
The market is in an overall Uptrend.
Here is our multiple timeframe analysis for this pair.
Let's start with the Weekly:
As you can see we are here moving in an ascending Parallel Channel.
In addition, there are two important key Levels. Firstly the Supprot at 1.20.
Secondly the Resistance at 1.34, where the market is at the moment.
The pink dotted line is a former Trendline which is now unvalid.
It just shows the current bullish power for GBP.
Now we continue with the Daily:
As said before, the market is at Resistance.
Additionally it is moving in a Wedge.
Because the wedge has a steep Trendline, we expect the market to break out of it
before it makes its next upturn.
The main target is the lower Trendline of the weekly Parallel Channel.
After that, the expection is a Trend Continuation, because of its bullish power.
Going on to the H4:
Here you can see the Daily Wedge again.
Furthermore, there are a Support and Resistance Levels here.
It is possible, that the market starts to range.
Lastly, let's take a look to the Entry Timeframe:
Now we are going to analyse the Entry with this template:
A: The overall Trend is an Uptrend, but it needs a correction to move further.
The Trend of the Entry Timeframe is sidewards.
That's why it is legit to short the market.
B: We are doing our MTFA at this particular moment.
C: Never break your rules.
1.: The structure Levels are:
- The upper Resistance
- The two dotted Support Levels
- The lower Trendline of the Daily Wedge
- The Neckline
2.: Usual Behavior after Head and Shoulders Pattern:
- Break of Neckline
- (Temporary) Trend Change
3.: Entry Trigger is the Break of Neckline.
4. & 5.: SL is 26 pips above the Neckline and the TP at the lower Support.
6. & 7. & 8.: Let's put it into the Position Size Calculator and wait for the Break after the left Shoulder!
We recommend to trade the Break with bearish Momentum or a Retest!
Thanks and successful Trading :)!
Comment:
Here is the RED BOX with the Trade Details for you ;)
