GBPUSD🗝️ LEVELS TO WATCH 👀AND WHY🤔🐲Hello Awesome Traders!
I trust you're having a fantastic trading week so far. Let's dive into an exciting opportunity presented by GBPUSD on its 1-hour chart. This setup is worth exploring as it offers potential for profitable trades.
GBPUSD has formed a double bottom pattern around the 1.2529 level, with striking similarities between the first and second bottoms.
Examining the CD leg, we observe two sets of equal downward swings, indicating symmetry in length. This setup is conducive to buying low and selling high, offering opportunities for traders.
For pattern enthusiasts, there are two notable formations: a flat AB=CD pattern and a dragon pattern. These patterns provide additional confluence and increase the setup's reliability.
I've drawn a trendline marked as 'E,' which the price should ideally break with a surge in volume to confirm market participation.
Targets:
For intraday traders, consider targeting the 62% Fibonacci retracement level of the AD leg at 1.25944.
Another target to watch for, especially for those eyeing the dragon pattern, is the 78% Fibonacci retracement level of the AD leg at 1.26125, which aligns with the 127% extension of the CD leg.
Trading Strategy:
Swing traders can monitor the chart over the next few days for potential long opportunities.
Keep an eye on price action and volume dynamics for confirmation before entering trades.
Set appropriate stop-loss orders to manage risk effectively.
For intraday trades, consider taking partial profits at key Fibonacci levels to lock in gains.
Happy trading, and may the pips be with you!
