What followed was classic price action movement which is often a battle between the bulls and the bears at these key levels. We can see that the bears came in strong in the form of a pullback to the of April before the bulls regained control of the market.
Price is now back at the high of April and has attempted on two occasions to break through but failed, with yesterday being one of those days. This created a new high that price needs to break and close above to suggest a trend continuation and when we will look to allocate risk to long trades.
We are seeing strength so far today but we need momentum to kick in to take price out of this current breather area it is in with a still likely.
The trend in play since bouncing off the daily 200SMA has been neat and linear and if the breakout presents itself, we would like to see this trend structure continue through to the next round number of 13.0000 and, ideally, very much beyond. Trends in FX can last up to a year and so this is not unlikely. If we look deeper, the current trend has been in play since September of last year.
Allowing a trend to establish itself and then trading in the direction of established trend is a far simpler, far more consistent and, over the long term, a far more profitable way of trading.
Waiting for price on the GBPSEK 0.37% to confirm a break and close above resistance to suggest a trend continuation.
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