GBP/USD In Depth Analysis 9.17.23
The initial aggressive selling that formed a key level of resistance indicates a strong selling pressure in the market. This resistance level suggests that the price struggled to break above it, indicating a potential reversal or slowdown in the upward momentum.
After consolidating below the resistance level, the price eventually broke the structure and formed a new level of support. This breakout signifies a shift in market sentiment, with buyers gaining control and establishing a new support level. The fact that this support level was not broken until you identified another aggressive selling point highlights its significance and strength.
Moreover, the resistance level formed after the aggressive selling that broke the structure indicates a potential area of selling interest. The fact that this resistance level is positioned more than halfway of its previous aggressive selling point suggests that sellers are still active and could potentially push the price lower.
Between these two points, the price experienced consolidation, which indicates a period of indecision and a lack of strong buying or selling pressure. This consolidation phase can be seen as a pause in the market, where traders are waiting for new information or a catalyst to drive the next major move.
After consolidating below the resistance level, the price eventually broke the structure and formed a new level of support. This breakout signifies a shift in market sentiment, with buyers gaining control and establishing a new support level. The fact that this support level was not broken until you identified another aggressive selling point highlights its significance and strength.
Moreover, the resistance level formed after the aggressive selling that broke the structure indicates a potential area of selling interest. The fact that this resistance level is positioned more than halfway of its previous aggressive selling point suggests that sellers are still active and could potentially push the price lower.
Between these two points, the price experienced consolidation, which indicates a period of indecision and a lack of strong buying or selling pressure. This consolidation phase can be seen as a pause in the market, where traders are waiting for new information or a catalyst to drive the next major move.
