GBPUSD Trendline & S/R Break And Retest
We forecasted this scenario on GBPUSD last week and it is playing out exactly as planned.
GBPUSD on the higher time frames (4H and above) is downtrending and is currently trading within a range. We have added a daily chart image and a zoomed out image of the 4H below this description.
Price had recently broken out of the strong 1.26500 resistance level but rejected higher prices and broke back into the range.
Price was in an uptrend towards the 1.26500 resistance level, but has now broken clean below, and is possibly forming a downtrend.
Price is now retesting the uptrend line, which is in line with a S/R zone(blue box) and also the downtrend line, which would add more confluence to a short trade if we see a strong rejection of this area.
We would like to see a strong rejection of the uptrend line and S/R zone with a bearish engulfing or pinbar on the 1H or 4H charts to confirm a bearish bias.
Our 3+ reasons to enter a short position;
-Break of uptrend line
-Retest and rejection of uptrend line
-Retest and rejection of S/R zone
-Rejection of downtrend line
-Strong bearish rejection candles on 1H/4H
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GBPUSD on the higher time frames (4H and above) is downtrending and is currently trading within a range. We have added a daily chart image and a zoomed out image of the 4H below this description.
Price had recently broken out of the strong 1.26500 resistance level but rejected higher prices and broke back into the range.
Price was in an uptrend towards the 1.26500 resistance level, but has now broken clean below, and is possibly forming a downtrend.
Price is now retesting the uptrend line, which is in line with a S/R zone(blue box) and also the downtrend line, which would add more confluence to a short trade if we see a strong rejection of this area.
We would like to see a strong rejection of the uptrend line and S/R zone with a bearish engulfing or pinbar on the 1H or 4H charts to confirm a bearish bias.
Our 3+ reasons to enter a short position;
-Break of uptrend line
-Retest and rejection of uptrend line
-Retest and rejection of S/R zone
-Rejection of downtrend line
-Strong bearish rejection candles on 1H/4H
