The Forex market has come alive after many years of very little activity. One pair in
particular that stands out is the GBPUSD.
Following the long-term consolidation, between 1.1409 and 1.4376, which held price
at bay from October 2016 until this month, price has taken a sudden dive through support.
Price reached historic lows this month, creating a low at 1.0356, and appeared as though
it was on a fast track towards the 1.0000 round number.
The pound has found some near-term strength and is heading up, so we need to look
at levels of resistance that could prevent price from staying up.
The major level of resistance above price is the consolidation low at 1.1409. This low was
formed in March 2020 and held for over two years before the breakout.
When price breaks out from consolidation, we tend to see a retest of the consolidation zone
before a continuation in the direction of the breakout.
If price fails to break above this level, then we could see further weakness in the pound
and a downtrend could unfold here, but patience as usual for now.
If you like enjoyed this post, make sure to like, and follow for more quality content!
If you have any questions or comments, comment below. We reply to every comment!
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
particular that stands out is the GBPUSD.
Following the long-term consolidation, between 1.1409 and 1.4376, which held price
at bay from October 2016 until this month, price has taken a sudden dive through support.
Price reached historic lows this month, creating a low at 1.0356, and appeared as though
it was on a fast track towards the 1.0000 round number.
The pound has found some near-term strength and is heading up, so we need to look
at levels of resistance that could prevent price from staying up.
The major level of resistance above price is the consolidation low at 1.1409. This low was
formed in March 2020 and held for over two years before the breakout.
When price breaks out from consolidation, we tend to see a retest of the consolidation zone
before a continuation in the direction of the breakout.
If price fails to break above this level, then we could see further weakness in the pound
and a downtrend could unfold here, but patience as usual for now.
If you like enjoyed this post, make sure to like, and follow for more quality content!
If you have any questions or comments, comment below. We reply to every comment!
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
