Looking at GBPUSD on the 1H chart, it can be seen that price has currently rebounded from a recent high made on the 1H on Friday 25th January from around 1.32175. From here there has been a candle, showing room for some downside, after the rally for the GBP following some news on Brexit, which was positive for the GBP.
In terms of a technical structure for GBPUSD , it is currently in a upwards , which it could potentially break out of. If it does, this could leave it to melt down towards the regions highlighted on the 1H chart.
Moreover, looking at the on the 1H, 4H and 1D, it shows that GBPUSD is currently overbought, moreover showing room for some downside.
Potential Scenarios that could occur include:
- Scenario 1: Break out of the upwards . Price should then look to first head towards 1.30900. It could then rebound off this point and start another bull run.
- Scenario 2: Break out of the upwards . Price should then look to first head towards 1.30900. It then tests this level and breaks through further, melting down towards 1.30410 (around this region in price). From here there could be a rebound to the upside.
- Scenario 3: Price may still look to remain in the upwards parallel structure and not go down whatsoever. This could be unlikely due to the sharp strengthening in the GBP recently over the last week, which should mean there should be a slight pullback.
If you managed to read it this far down, thanks for reading this! If you could, please do offer your ideas & perspectives on this pair. Buy or Sell and why? Additionally, drop me your charts for it, that'd be great so I can see where you are coming from. I'm a new guy to the FX & Crypto market, trying to learn FX & Crypto, and I'd appreciate any help people may offer!
Please drop a follow! I need reputation points!!
Nonetheless, TRADE CLOSED!
This idea took slightly longer than expected due to everyday news headlines on Brexit to act straight towards the downside.