My view of the GBP/USD
GBPUSD is currently in a new up trend, breaking the previous lower high on the daily chart.
Also, the DXY is at the top of its channel and struggling to break out of resistance. Whether a long or short is on the cards depends on the strength of the USD. If the DXY breaks out of its channel, the GBPUSD is likely to sell.
However, GBPUSD is trading in an ascending triangle; and the DXY is in a strong sell zone. If the DXY price falls AND the GBPUSD closes with a breakout of it's triangle to the upside, we could see a push to the 1.2650 level before a retest of support. At this point I'll be looking for long positions; potentially seeing a push to the 1.3 level.
Alternatively, if the DXY breaks out of its channel to the upside AND GBPUSD breaks out to the downside, I'll be looking for shorts.
Summary:
1) Wait for price to break out of the Ascending triangle,
2) AND retest the this supply zone (green box)
3) Enter the trade on confirmation of trend continuation.
*Disclaimer: I'm a novice and still learning. Trade at your own risk :) Let me know your thoughts.
GBPUSD is currently in a new up trend, breaking the previous lower high on the daily chart.
Also, the DXY is at the top of its channel and struggling to break out of resistance. Whether a long or short is on the cards depends on the strength of the USD. If the DXY breaks out of its channel, the GBPUSD is likely to sell.
However, GBPUSD is trading in an ascending triangle; and the DXY is in a strong sell zone. If the DXY price falls AND the GBPUSD closes with a breakout of it's triangle to the upside, we could see a push to the 1.2650 level before a retest of support. At this point I'll be looking for long positions; potentially seeing a push to the 1.3 level.
Alternatively, if the DXY breaks out of its channel to the upside AND GBPUSD breaks out to the downside, I'll be looking for shorts.
Summary:
1) Wait for price to break out of the Ascending triangle,
2) AND retest the this supply zone (green box)
3) Enter the trade on confirmation of trend continuation.
*Disclaimer: I'm a novice and still learning. Trade at your own risk :) Let me know your thoughts.
Await the retest of support and confirmation of entry.