GBPUSD | **MOVING LOWER or MOVING HIGHER?!!**
After the US Non Payroll news, Cable took a dive back down to our major support area. This area held and price bounced back up, adding to the strength of the support area. So, will GBPUSD continue moving higher? Or will it break structure again and move lower once more?
Real answer is that no one truly knows! Trading is based on probabilities, so what is the higher probability?
As long as price does not break and close below the support area, the higher probability is to continue long. To this we can add that on the 4H frame price has
- been forming HHs and HLs.
- Add the Fib retracement from previous high to previous low and price has bounced off the 61.8% (this level lands at the support area as well).
IF price breaks the support area, the chances of it moving back down to 1.17840 would become higher. Here a break and re-test would be needed in order to place a sell entry.
Best of luck!
Real answer is that no one truly knows! Trading is based on probabilities, so what is the higher probability?
As long as price does not break and close below the support area, the higher probability is to continue long. To this we can add that on the 4H frame price has
- been forming HHs and HLs.
- Add the Fib retracement from previous high to previous low and price has bounced off the 61.8% (this level lands at the support area as well).
IF price breaks the support area, the chances of it moving back down to 1.17840 would become higher. Here a break and re-test would be needed in order to place a sell entry.
Best of luck!