However, looking at the H4 chart, you can clearly identify three things:
1) A indicated by the light pink area in the chart.
2) A strong resistance (royal blue line) which has stopped the rallies in GU multiple times.
3) A (yellow ) which is VERY STRONG. It has managed to stop the fall 6 times(indicated by green arrows).
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Based on these factors, there are two distinct possibilities:
1) Case: The holds, price breaks the resistance line(blue line), consolidates above it and then moves towards 1.33.
2) Case: The breaks down, and the price continues to go down.
However, I prefer the case and I will explain it in a moment.
For the scenario, aggressive traders can BUY between 1.2980-1.3000 and set TPs at 1.3080, 1.3150 and 1.33 respectively.
SL should be placed below 1.2920.
Conservative traders can wait for the price to break the (blue line) and BUY after a successful retest. (I have indicated it with arrows in my chart)
This is the . As you can see, we have a Golden cross on the which is usually a very sign.
The Golden cross happened around 1.2920. So, as long as price manages to stay above this, we can continue to look for "BUY ON DIPS" trades.
NOTE: The last time a Golden Cross happened on GBPUSD , Price rallied almost 1800 pips that year.
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