Price is making HH an HL in the bigger TF (weekly) for a long time, this possibly a HL + Double bottom, we can see some kind of exhaustion in the 4hr TF. Safe way to take this trade is to wait for the price to break out of the yellow zone. If the price brakes out up and close above i will consider this trade valid.
After a considerable drop based on the General Election result I feel now is a good time to get in cheap on the GBP against a falling USD. I have placed my stop just below the current 200sma (which i expect to rise over the next few weeks) and set my TP below yesterday's open.
Firstly price moved above 200sma on 18/4/17 for the first time since the Brexit referendum. Price action has consolidated above the 1.27648 level which had proven to be a difficult resistance level to breach post Brexit, this level has since turned to a clear support level over the last week. Initial TP placed just shy of the 1.30000 round number.
Im looking at the Gbp usd to continue to trend from the underside towards 1.27500 resistance before sellers get to gain control again.
The 1.25500 resistance area need a big strong push through to reset recent data and continue up.
Will keep posted with updates