GBP/USD: The market is exhausted, it's time to move UP!
Updated
What’s up guys and welcome to my profile, my name is Gianni and today I’m going to analyse the GBP/USD, trying to translate the market information with a full technical analysis on different time frames perspectives.
For a better understanding of my bullish BIAS, let’s have a quick look on the monthly timeframe:
The market has been trending to the downside since almost 7 months and now, it is approaching to retest an important resistance area turned in support, a strong level that rejected the price few times during the past years (see the red arrows in the picture).
Overall the market is bearish but still there is a possibility of a retracement bouncing on the current level.
Switching to the weekly timeframe:
A strong bearish impulse seems is getting a breath, the green candle formed on the support/resistance level is definitely a clue of price retracement.
In the daily timeframe I can analyse better this specific situation:
Approaching on the strong monthly support, the market slowly lost momentum and it’s visible just having a look on the last few candlesticks, small candles, doji candles, overall long shadows up and down, this is clearly a sign of market indecision with a good possibility to move now to the upside.
Interesting is the level 0.50% of Fibonacci, a level where the price previously got its retracement and a level where the price could start a new consolidation phase.
Finally back on the 4h timeframe:
During the last impulse, the market as been following a descending channel and it is very important how the price is moving at the end of this channel.
The price is currently above the middle value area of the channel, that is another clue that the market is getting more bullish pressure.
Considering that overall the GBP/USD is still trending bearish, I wouldn’t open any position right now but I would, instead, wait patiently the breakout of the descending channel and the price action after the retracement.
If you enjoy this trade idea, support my work with a thumb up and don’t forget to follow my profile for more detailed technical analyses!
Trade safe and responsibly,
Gianni
DISCLAIMER
Please note the views are not investment advice and should be used only for educational purpose
For a better understanding of my bullish BIAS, let’s have a quick look on the monthly timeframe:
The market has been trending to the downside since almost 7 months and now, it is approaching to retest an important resistance area turned in support, a strong level that rejected the price few times during the past years (see the red arrows in the picture).
Overall the market is bearish but still there is a possibility of a retracement bouncing on the current level.
Switching to the weekly timeframe:
A strong bearish impulse seems is getting a breath, the green candle formed on the support/resistance level is definitely a clue of price retracement.
In the daily timeframe I can analyse better this specific situation:
Approaching on the strong monthly support, the market slowly lost momentum and it’s visible just having a look on the last few candlesticks, small candles, doji candles, overall long shadows up and down, this is clearly a sign of market indecision with a good possibility to move now to the upside.
Interesting is the level 0.50% of Fibonacci, a level where the price previously got its retracement and a level where the price could start a new consolidation phase.
Finally back on the 4h timeframe:
During the last impulse, the market as been following a descending channel and it is very important how the price is moving at the end of this channel.
The price is currently above the middle value area of the channel, that is another clue that the market is getting more bullish pressure.
Considering that overall the GBP/USD is still trending bearish, I wouldn’t open any position right now but I would, instead, wait patiently the breakout of the descending channel and the price action after the retracement.
If you enjoy this trade idea, support my work with a thumb up and don’t forget to follow my profile for more detailed technical analyses!
Trade safe and responsibly,
Gianni
DISCLAIMER
Please note the views are not investment advice and should be used only for educational purpose
Note
The market performed what I expected, but still bearish, I wouldn't open any trade yet.
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Disclaimer
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