My Analysis of the GBP/USD Daily Chart
1. Key Support at the Blue Line (1.20332):
The blue line is a critical support level. If the market breaks below this level, it signals a continuation of the bearish trend. I expect the price to drop further until it reaches the white trendline below.
2.Bearish Continuation to the White Trendline:
If the blue line is broken, the price will likely continue its downward move until it touches the white trendline, which has previously acted as a major support zone for reversals.
3.Reversal at the White Trendline:
When the price reaches the white trendline, I anticipate a potential reversal. From there, the market could start moving upwards, shifting into bullish momentum. This move is represented by the green zigzag arrows in my chart.
4. What Happens If the White Trendline Breaks?
If the price fails to hold at the white trendline, the bearish trend will likely persist, pushing the price toward lower support levels, potentially below 1.14 or even 1.10.
5. My Trading Plan:
Short Trades: I will consider selling if the price breaks the blue line and shows strong bearish momentum.
Long Trades: I will wait for bullish confirmation (like bullish candlesticks or reversal patterns) at the white trendline before entering a buy trade.
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