- Good opportunity to make a quick short-term long trade on the GBP/USD here with a double bottom (more or less) formed on the 15-min chart - If all goes to plan, then the price could deflect entirely off the $1.286 - $1.285 support levels (thick double red horizontal lines), and send the pair beyond $1.29 (green horizontal resistance line) to reach the next resistance level of 1.295 (light blue horizontal line). - On reaching $1.295, price action could then again be bearish, going back to $1.29 hence falling in line with the descending triangle pattern on the 1-hour chart (see my posts).
**Note that I am not responsible for your trading decisions. It is solely your responsibility to make your own decisions ;)
Hi Michael . Apologies I am confused . You have two different idea posted, one is bearish and one is bullish on GBPUSD.. Is that because they are two different time frames ? And that you are short on long-term but long on shor-term ?
michaeldobfx
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Hi @mohsin_99,
Yes, the reason why I suggested a buy on this chart and short on the other chart is because of the difference in time frames. On the 15-min chart, the double-bottom would've signalled a reversal in the bearish trend beforehand, as the price deflected off the $1.26 - $1.25 support levels, leading to bullish trend and crossing the $1.29 level and onwards. But that didn't work out because of pretty good U.S. economic data being released (or some sort of unexpected increase in demand for the USD). That's why it's good to take into account and understand any fundementals before solely relying on technical analysis to place a trade, right? But here, it would've been a long because of the double bottom, reaching the $1.295 resistance level before bouncing off the upper downward trend line (as you see in the descending triangle in my 1-hour chart). That would've possibly seen the pair go back down to the $1.29 support level. However, much of that is now irrelvant as the pair reached a support level of $1.275 last night. But yes, to your question, it would've been long short-term for a quick trade on the 15-min chart, and a medim-term short trade on the 1-hour chart.
ALIKZ
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@michaeldobfx, Hi Michael. Thank you . That is very helpful. Will keep in mind for next week trading.
michaeldobfx
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@mohsin_99, Sorry, made a few grammer/spelling mistakes there. Still trying to wake up with my coffee! Hopefully that makes sense though.