GBPUSD - Price recovered from a false break below wedge support this week. Price was also supported by swing lows from 2016 and a rising trend-line originating all the way back from 1986 (Blue dashed line).
After breaking below, price tested the under side of both the wedge and the trend-line before recovering and closing the week above support. The false break commonly precedes a change in trend direction, especially at a critical support level.
I will link to a related idea I posted last week showing British Pound Futures at a key support level with likelihood of buyers to step in.
I will also post 1 hour chart in the comments showing price react to these key trend-lines / levels.
Price may consolidate between 1.21 and 1.22 for a bit before breaking out. Long entry upon re-testing support.
After breaking below, price tested the under side of both the wedge and the trend-line before recovering and closing the week above support. The false break commonly precedes a change in trend direction, especially at a critical support level.
I will link to a related idea I posted last week showing British Pound Futures at a key support level with likelihood of buyers to step in.
I will also post 1 hour chart in the comments showing price react to these key trend-lines / levels.
Price may consolidate between 1.21 and 1.22 for a bit before breaking out. Long entry upon re-testing support.
Note
1 Hour Chart showing support / resistance.Note
35 Year Monthly Chart showing massive head and shoulders which broke the neckline after Brexit vote. Price failed on re-test, 2018.
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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.