Direct from the desk of Dane Williams,
exclusive to leofinance.io
Key Takeaways:
- GBP/USD retests and holds 1.3700 daily zone as support.
- Higher time frame bullish trend remains intact.
- Bias remains to attack the pair from the long side only.
GBP/USD Technical Analysis
As GBP/USD blew through daily resistance at the 1.3700 zone, our bias had been to play the pair only from the long side.
If you click the link above and explore the cable narrative that we've been following on the blog, you'll also see that the market already offered numerous opportunities to do so on each bounce.
With GBP/USD pulling back to now retest the same zone as support for the second time, the market may well have given us yet another layup.
Just take a look at the daily chart below.
GBP/USD Daily:
You can see that nice fresh bounce off the 1.3700 daily zone since we last talked about the pair and should be especially excited by that wick on Friday's daily candle.
The way that the wick spikes exactly into the dead centre of the daily zone before closing as an extremely bullish daily candle is a definite sign that the bulls are back in charge.
This is the type of price action we want to see into and above a daily zone, to maintain our bias of only playing GBP/USD to the long side.
With that in mind, let's now zoom into an intraday chart and have a look at the price action on the hourly.
GBP/USD Hourly:
The first arrow is the last area of short-term resistance that when retested as support, can act as an entry point for longs.
The second arrow is the retest (after price left the daily zone) and entry trigger that we look for.
You can then see that price sort of hovered just above the zone, before the lunge back and immediate bounce that caused the daily wick that we spoke about just above.
As you can see, the market gave ample opportunity to buy GBP/USD using my simple forex support and resistance trading strategy.
Whether you're a conservative trader who places your stops below the daily zone, or an aggressive trader who places your stops below the intraday zone, this setup offered minimal drawdown and plenty of upside remains.
Best of probabilities to you.
On the Calendar This Week:
- CPI y/y (GBP)
- BOE Gov Bailey Speaks (GBP)
- Crude Oil Inventories (USD)
- Unemployment Claims (USD)
- Retail Sales m/m (GBP)
- Flash Manufacturing PMI (GBP)
- Flash Services PMI (GBP)
- Flash Manufacturing PMI (USD)
Just a final note on the data releases this week.
Each of the above listed releases are rated as tier-2 or orange releases.
Make of that what you will, but it's worth taking note of these if you're trading GBP/USD regardless.
Why not leave a comment and share a chart of your own in the comments section below? All comments that add something to the discussion will be upvoted.
This daily market analysis blog is exclusive to leofinance.io.
Posted Using LeoFinance Beta
It looks very good that chart colleague, to this I would add the breakout of a bearish channel visible in 4 hours candles. I think this added to the bounce off the daily support gives us a very good confirmation that the bulls are now in control mate.
Posted Using LeoFinance Beta
Congratulations @forexbrokr! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s) :
Your next target is to reach 20000 upvotes.
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPCheck out the last post from @hivebuzz:
Support the HiveBuzz project. Vote for our proposal!