possible triple bottom on GBP/ USD
The engulfing (hammer), candle on 21st sep, could be a reason for the price to test that upper resistance area (red arrow down), which coincides with the overhead supply trendline and the decending 20 period EMA.
In this scenario the market would then fall to put in a final test of the 1.28770 area, creating a perfect triple bottom, before climbing to the channel top and the previous major resistance area 1.34300.
I think there is a good basis for this based solely on my definition of support and resistance, but of course seldom do things play out exactly as we perceive, so I am not recommending you buy or sell at these levels if you are a beginner. Just a prediction to purge it from my system. Please feel welcome to watch this idea unfold.
In this scenario the market would then fall to put in a final test of the 1.28770 area, creating a perfect triple bottom, before climbing to the channel top and the previous major resistance area 1.34300.
I think there is a good basis for this based solely on my definition of support and resistance, but of course seldom do things play out exactly as we perceive, so I am not recommending you buy or sell at these levels if you are a beginner. Just a prediction to purge it from my system. Please feel welcome to watch this idea unfold.
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