Fundamentally the pound is weakening. GDP is falling, the economy is having a rough time during corona virus and a potential second nation wide lockdown.
Technically we can see an ascending channel on H4 but more interestingly we can see a bullish flag on H1.
It broke out of the ascending channel but came straight back in after failing the re-test which is why we...
Recognized the market structure however it broke-out over night.
I am going to wait for the close above the resistance level as well as the re-test as GBP is fairly unstable right now and will be for a while.
Pairing this with the MACD indicator for the buy signal as well as illustrating the momentum will make for a nice trade.
Targeting an H4 resistance level...
Will be looking for a breakout out of this descending channel creating a new bullish trend.
Looking for an entry on H1 with a MACD buy signal, even if it does not break out we can still have a nice trade to the top of the channel.
Price is moving down a channel in a bearish trend creating higher lows and lower lows.
We can see here price struggled to break past the key level and test the higher lows which means logically it is on its way down to test the bottom of the channel and create a new lower low.
only 30+ pips but still a nice pick.
On it's way to testing the top of the ascending channel, what could happen next?
a) Breaks through 138.000 and goes to test 138.277
b) Reverses, comes down to test the bottom of the ascending channel before breaking through and becoming bearish
Fundamental analysis tells us that GBP is going to weaken due to brexit negotiations AND the UK heading back into a 2nd...
Short-Term should be shorting. Looking for a re-test of those key levels below and either...
a) Break through levels to test bottom of the ascending channel
b) Re-test the levels and create new higher highs and continue the bullish trend
c) Break through all levels and breakout of the ascending channel indicating a reversal
Either way make sure to...