GBPUSD Retest Older Highs -- Break of Downward Trend??

Analysis Following

Comment:

Focus on GBPUSD

Following up to my last GBPUSD analysis we were not able to break the support level at the 1.26250 level. As I wrote in my last post I was expecting some bounce play to occure that this level as we've seen a lot of indecision of the market at that level before. We couldn't break the head and shoulders neckline and are now seeing somewhat of a breakout of the sideways market on the lower time frame. We are currently gernerating higher highs and higher lows and have to face somewhat of a bullish momentum right now. My expectation is that the market is going to retest the old highs which I entitled as the head of the head and shoulders pattern before. Right now we see a pullback to the just recently broken 1.26970 level. We are already seeing some more bullish momentum if you notice the long wick of the last candle that tried to push through this level and got bought back up immediately. I will try to find my entry on the lower timeframes (M5 or M15). A potential double bottom with some bullish RSI divergence would get me into this long trade with a tight stop below the double bottom and a good risk to reward ratio.

Let me know what you think you my idea in the comments.

Regards

Michael

Trade closed: target reached:

Take Profit target reached. 38 pips profit
Overall record. 1/3, -13 pips