What I am seeing:
Price has been rejected in this supply zone on a few occasions near price level 1.08900
Price has been accepted at a demand zone near price level 1.08200
Reversals out of supply back into demand.
Buying appears strong. Selling appears to be weak. Technically this looks like buyers are lurking below but for the time...
Dollar is strong across the board. If this pushes higher then hopefully it will get into an overextended condition and might be good opportunity to take a short.
Must be patient.
For long positions, anything that pulls back to the bottom of the rising channel has a potential for a long.
4 hour chart shows what looks like exhaustive buying as price looks like it is leaning over and could not break the prior swing high.
Rally up could be protected by 0.638. Stop will be placed beyond this price level.
Top of descending channel would coincide with approximately 705 fib retrace.
The weaker the pound gets the stronger this gets. I dont see the pound strengthening anytime soon.
Ill wait for long take profits at this level and then a resumption of the uptrend for break and pullback.
1. Strong downtrend line has been broken to the top.
2. 3 rejections at 100 indicates a strong bottom
3. Are of confluence. Swing point + downtrend line
Ill wait for a reversal signal at that level.
Reason for bias:
1. Obvious downtrend on hourly
2. Bullish USD sentiment (Most important imho)
3. FIB level lines up perfectly with pullback zone 2
4. Zone 1 is a strong level with prior support and resistance.