GBPAUD Bullish Divergence|Liquidity Grab|Structural Support

25 thg 7, 2020

Evening Traders,

Today’s Analysis- GBPAUD – impulse sell testing key support where a bounce is probable with follow through.

Points to consider,
- Structural support (trade location)
- Valid bullish divergence
- Liquidity grab identified
- Oscillators diverging
- Volume impulse probable
- Local resistance target (.618 over-extension)

GBPUSD impulse sell has halted at key structural support, a trade location that has acted as a pivot point on the chart. There is a valid bullish divergence; oscillators are recovering from oversold conditions putting emphasis on a probable relief rally.

The immediate target is local resistance, an overthrow will push price to the .618 Fibonacci, likely to top out here as the 200 MA is overhead resistance.

A potential liquidity grab has played out due to the clean structural support; this further enhances the probability if a relief rally.

A volume influx is probable to deviate price from structural resistance; a break in either direction needs to be backed with increasing volume to avoid fake-outs.

Overall, in my opinion, GBPUSD is due for a relief rally which is most probable at current structure. A long trade is valid with defined risk, immediate target – local resistance.

What are your thoughts?

Thank you for following my work!

And remember,

“The desire for constant action irrespective of underlying conditions is responsible for many losses in Wall Street.” – Jesse Livermore