Hello fellow traders,
Welcome to my profile, and for the beginning I would like to ask you to like, comment and follow my analysis , it really motivates and keeps me going to see the support.
As usual I am looking at a big picture here. Looking at the chart we can see a clear downtrend of British Pound against US Dollar for many years now.
Now we have formed a pretty nice looking DECENDING triangle. Well why I am long then?
There are 2 main reasons. Starting with TA, i should be quite bearish in this situation as a text book example would be that we should see a trend continuation. But guys, take a look at that massive volume that came in to defend the horizontal line of the triangle. That volume has not been seem for a long time. It represents how many buyers we had on that level and how much capital was there to defend British Pound to break lower. For that reason I do not see us breaking down for some time. Is this a point of trend reversal? It is too early to say. But i think we have a very good chance of touching and possibly break the upper line of our triangle. For day trades and swing trades it is quite a solid opportunity.
The second reason is outlook on US Dollar as American economy will face some big troubles in the upcoming times, and weakening of USD is quite expected. I guess I do not have to go in details and that we all see this.
As a conclusion , retest of horizontal or lower line is quite possible, but with much clearer resistance and going to the upper line of triangle which actually lines up nice with a previous congested areas of trading activity which would act as a resistance at 1.30000
I hope you like my post and find a minute to support my work.
Thank You very much
Welcome to my profile, and for the beginning I would like to ask you to like, comment and follow my analysis , it really motivates and keeps me going to see the support.
As usual I am looking at a big picture here. Looking at the chart we can see a clear downtrend of British Pound against US Dollar for many years now.
Now we have formed a pretty nice looking DECENDING triangle. Well why I am long then?
There are 2 main reasons. Starting with TA, i should be quite bearish in this situation as a text book example would be that we should see a trend continuation. But guys, take a look at that massive volume that came in to defend the horizontal line of the triangle. That volume has not been seem for a long time. It represents how many buyers we had on that level and how much capital was there to defend British Pound to break lower. For that reason I do not see us breaking down for some time. Is this a point of trend reversal? It is too early to say. But i think we have a very good chance of touching and possibly break the upper line of our triangle. For day trades and swing trades it is quite a solid opportunity.
The second reason is outlook on US Dollar as American economy will face some big troubles in the upcoming times, and weakening of USD is quite expected. I guess I do not have to go in details and that we all see this.
As a conclusion , retest of horizontal or lower line is quite possible, but with much clearer resistance and going to the upper line of triangle which actually lines up nice with a previous congested areas of trading activity which would act as a resistance at 1.30000
I hope you like my post and find a minute to support my work.
Thank You very much