GBPUSD🗝️ LEVELS TO WATCH 👀AND WHY🤔🐲
Updated
Hello Awesome Traders!
I trust you're having a fantastic trading week so far. Let's dive into an exciting opportunity presented by GBPUSD on its 1-hour chart. This setup is worth exploring as it offers potential for profitable trades.
GBPUSD has formed a double bottom pattern around the 1.2529 level, with striking similarities between the first and second bottoms.
Examining the CD leg, we observe two sets of equal downward swings, indicating symmetry in length. This setup is conducive to buying low and selling high, offering opportunities for traders.
For pattern enthusiasts, there are two notable formations: a flat AB=CD pattern and a dragon pattern. These patterns provide additional confluence and increase the setup's reliability.
I've drawn a trendline marked as 'E,' which the price should ideally break with a surge in volume to confirm market participation.
Targets:
For intraday traders, consider targeting the 62% Fibonacci retracement level of the AD leg at 1.25944.
Another target to watch for, especially for those eyeing the dragon pattern, is the 78% Fibonacci retracement level of the AD leg at 1.26125, which aligns with the 127% extension of the CD leg.
Trading Strategy:
Swing traders can monitor the chart over the next few days for potential long opportunities.
Keep an eye on price action and volume dynamics for confirmation before entering trades.
Set appropriate stop-loss orders to manage risk effectively.
For intraday trades, consider taking partial profits at key Fibonacci levels to lock in gains.
Happy trading, and may the pips be with you!
I trust you're having a fantastic trading week so far. Let's dive into an exciting opportunity presented by GBPUSD on its 1-hour chart. This setup is worth exploring as it offers potential for profitable trades.
GBPUSD has formed a double bottom pattern around the 1.2529 level, with striking similarities between the first and second bottoms.
Examining the CD leg, we observe two sets of equal downward swings, indicating symmetry in length. This setup is conducive to buying low and selling high, offering opportunities for traders.
For pattern enthusiasts, there are two notable formations: a flat AB=CD pattern and a dragon pattern. These patterns provide additional confluence and increase the setup's reliability.
I've drawn a trendline marked as 'E,' which the price should ideally break with a surge in volume to confirm market participation.
Targets:
For intraday traders, consider targeting the 62% Fibonacci retracement level of the AD leg at 1.25944.
Another target to watch for, especially for those eyeing the dragon pattern, is the 78% Fibonacci retracement level of the AD leg at 1.26125, which aligns with the 127% extension of the CD leg.
Trading Strategy:
Swing traders can monitor the chart over the next few days for potential long opportunities.
Keep an eye on price action and volume dynamics for confirmation before entering trades.
Set appropriate stop-loss orders to manage risk effectively.
For intraday trades, consider taking partial profits at key Fibonacci levels to lock in gains.
Happy trading, and may the pips be with you!
Note
Hello, traders! It's time for an update on the GBP/USD pair as we anticipate a potential turning point in the market. Let's dive into the latest analysis and explore the exciting opportunities ahead.
Market Observation:
The GBP/USD pair has recently experienced a significant shift in momentum, with the price breaking below the key support level at 1.25294. This breach of support signals a change in market sentiment and opens up new trading possibilities for savvy traders like yourself.
Formation of Descending Triangle:
A closer look at the price action reveals the formation of a descending triangle pattern. This pattern is characterized by lower highs and a horizontal support level, indicating a potential continuation of the downtrend. With this pattern in play, we can anticipate further downside movement in the GBP/USD pair.
Key Targets:
In light of the descending triangle formation, it's essential to identify potential downside targets for our trading strategy. The levels to watch closely are:
Initial target: 1.24892
Secondary target: 1.24641
These levels represent areas where we may see increased selling pressure and potential opportunities for short trades.
Trading Strategy:
For traders looking to capitalize on the downward momentum, short positions could be considered upon confirmation of a breakdown below the support level. Keep a close eye on price action and volume dynamics to validate the trade setup and manage risk effectively.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.