Set-up of the Week - GBPUSD = GOOD CONFLUENCE

17 thg 4, 2015

The GBPUSD has been ranging for a just over a month now but this choppy consolidation began to show signs of movement again by the end of last week. This week we have finally seen some real movement and it appears to be ending with a nice little set-up.

There is some heavy resistance on the Bullish side with the 50ema laying on thee 1.5000 level, which has acted as major Support and Resistance in the past and again recently. Depending on whether you choose the Daily or Weekly chart to draw your Fib Retracements you'll see that levels lay either side of this price.
We have chosen the Weekly chart. From this you can see throughout today price briefly managed to breakthrough and bounce of the 0.5 Retracement a strong reaction to this caused price to rally back down creating the Inverted Hammer we now see. With 2 hours left till the close for the weekend, we can't see this changing at all.

Thus we have 5 string factors of confluence -
1. Inverted Hammer
2. 1.5000 Resistance
3. 50ema Bounce
4. 0.5 Fibonacci Retracement
5. Trading with the Trend

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Happy Weekend!