GBPUSD Daily - Channel Hold or Break
Updated
Currently, GBPUSD is in a descending channel and possibly on its way to touch the top of the channel for the 3rd time in the next 2-3 days.
Bullish Idea:
- It is possible at the time when it touches the top part of the channel to go through the channel at the top.
- If it does go through the channel, it should touch the key level just above the channel break and then move its way down to retest the key level where it has broken through(or retest the upper channel line).
- When it retests the channel top or that key level, then it should move its way up to the top key level on the chart.
Bearish Idea:
- If the price tests the top part of the channel for the 3rd time and make a reversal candle pattern formation(more or less as it did on 28-29 Oct 2021), it's possible it would move its way back down the channel again to the first key level below it or even further down to the bottom key level.
- Since there is a very strong resistance key level at the bottom, and if it should touch that again for the 2nd time, I am not so sure it would go even lower than that level(or even tough the bottom part of the channel again for that matter), thus it may even form a W formation at the bottom, causing the price to go bullish after that.
My thoughts:
I think there is a strong possibility the channel may have already reached its lowest point at the key level at the bottom, which I think may cause the start of a new bullish pattern, but I think we may need to wait and see.
Let's see what the future holds.
Bullish Idea:
- It is possible at the time when it touches the top part of the channel to go through the channel at the top.
- If it does go through the channel, it should touch the key level just above the channel break and then move its way down to retest the key level where it has broken through(or retest the upper channel line).
- When it retests the channel top or that key level, then it should move its way up to the top key level on the chart.
Bearish Idea:
- If the price tests the top part of the channel for the 3rd time and make a reversal candle pattern formation(more or less as it did on 28-29 Oct 2021), it's possible it would move its way back down the channel again to the first key level below it or even further down to the bottom key level.
- Since there is a very strong resistance key level at the bottom, and if it should touch that again for the 2nd time, I am not so sure it would go even lower than that level(or even tough the bottom part of the channel again for that matter), thus it may even form a W formation at the bottom, causing the price to go bullish after that.
My thoughts:
I think there is a strong possibility the channel may have already reached its lowest point at the key level at the bottom, which I think may cause the start of a new bullish pattern, but I think we may need to wait and see.
Let's see what the future holds.
Note
Creeping very close to the top line of the channel, almost there!Note
After touching a very important key level(stretching from 20/21 July 2021) there is a Major possibility the price is going to start reversing now and form a new bearish movement downward within that big descending channel. Just have to keep an eye on this.Note
I see it's starting to touch the top of the channel, here are now a critical point where it could either start making a big reversal or start breaking through the channel next week. Let's wait and see.Note
Well done! Seems like it broke the channel very hard. On it's way to the first resistance zone indicated on the chart. This is one cool idea that went true. Will keep an eye on this.
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