TraderAvDM
Long

"IF" descending Triangle Breaks Upwards, BIG BUY on GBPUSD

FX:GBPUSD   British Pound / U.S. Dollar
During the last 3-4 weeks, we have been seeing a subdued price action on GBPUSD due to lack of any Brexit related Headlines or meaningful progress.
However, looking at the H4 chart, you can clearly identify three things:

1) A DESCENDING TRIANGLE indicated by the light pink area in the chart.

2) A strong resistance trend line (royal blue line) which has stopped the rallies in GU multiple times.

3) A support zone (yellow rectangle ) 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) Bullish Case: The support zone holds, price breaks the resistance line(blue line), consolidates above it and then moves towards 1.33.
2) Bearish Case: The support zone breaks down, and the price continues to go down.


However, I prefer the bullish case and I will explain it in a moment.

For the BULLISH 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 trend line (blue line) and BUY after a successful retest. (I have indicated it with arrows in my chart)


This is the daily chart . As you can see, we have a Golden cross on the daily chart which is usually a very bullish 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.



Trade active: Buy Active at 1.2980. SL placed at 1.2915
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