On
GBPUSD
, there is a strong downtrend. The price makes Higher Low and Lower Low (See blue lines). Go 4H bars if you want to see a bigger picture. The price finished its impulsive leg and doing the correction. That is the case when the trend is our friend and we can follow it. Thus, the perfect entry should be found when the correction completes and new impulse leg will be formed.
The reversal point and opportunity to go short is 1.4355 level.
1. There is a resistance level at 1.4355. It was acted as a support but after the breakout, it became the resistance. Price respected those levels few times and it is expected it will do again.
2. The trendline - dynamic resistance (orange line) exactly hits that reversal zone.
3. Fibonacci retracement 50%.
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Trading Books Online - www.trading-library.com
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GBPUSD
, there is a strong downtrend. The price makes Higher Low and Lower Low (See blue lines). Go 4H bars if you want to see a bigger picture. The price finished its impulsive leg and doing the correction. That is the case when the trend is our friend and we can follow it. Thus, the perfect entry should be found when the correction completes and new impulse leg will be formed. The reversal point and opportunity to go short is 1.4355 level.
1. There is a resistance level at 1.4355. It was acted as a support but after the breakout, it became the resistance. Price respected those levels few times and it is expected it will do again.
2. The trendline - dynamic resistance (orange line) exactly hits that reversal zone.
3. Fibonacci retracement 50%.
-----------------------------------------------------------------------------------------------------------------------------------------------------
Trading Books Online - www.trading-library.com
Top 10 Forex Broker: www.best10forex.com