A doji was formed around a strong resistance line on the 4hr time frame. I am comfortable that a drop will occur and will I hold unto this position until it reaches the 50% Fibonacci line. In which I will conclude if this position has potential to move further down.
My stop loss is above the resistance line.
My view on this pair is a short in the long term but for now I am expecting two ways, If the trend line is respected, I will set a buy till it hits my target of 0.79960 levels. I will then wait for a short if doesn't breakthrough the 0.77100 levels.
It has respected the trend line for more then 4 weeks which would indicate a strong support. I have left my sell order just below the 1.00153 level which will activate my order and will hold unto it till it hits around the 31st of January's low.
A hammer candle has formed on the Orange trend line (Resistance) which is big indication for it to go down but keep note that Teresa May will be talking about brexit on a Tuesday which will cause this pair to be volatile in either position but for Monday, I can clearly see it go all the way to the purple trend line (Support) if the resistance line does not get...
The trend line ( Purple ) has been tested twice and and the resistance ( Green ) that was formed on the the 14th of December was tested and caused a drop on the downside and nearing the trend line. If it breaks through that expect it to hit the 1137.33 levels and if it doesn't breakthrough that and respects the trend line. I will hold the position till it hits...
The chances of it breaking through on the downside or the upside is pretty high. If it breaks through the trend lines ( Purple & Orange ) expect it a rally in either side. Keep a good look on it to avoid any fake breakouts so keep your SL tight.
Its been in a consolidation for about a week (Due to the holidays), if it breaks on the downside prepare for a sell but keep an eye for any fake breakouts.
When I activate my trade. I will hold unto this position till around the 78.6% ( 0.9396 ) Fibonacci mark and leave my SL around a few pips above the consolidation pattern.
It had been bearish for more then a week and I witnessed a short term resistance trend line ( Orange ) forming since yesterday and if it breaks through that expect a rally on the upside and maybe hit last weeks high in the long term .
Text in green is my take profit area.
We have closed our GPB/USD trade from yesterday in profit. The reason for the close is that price action has twice rejected the 1.27000 level and we now await a break of this level to resume our buy bias.
On another failed break we will consider selling at this level as buyers maybe exhausted and the market will need to drop before buyers re-enter....
If it respects the long term Support trend line ( Purple ) I can see it potentially going on the upside and breaking through the resistance trend line ( Orange ) which I will close this position aroud the 50% Fibonnaci line . If it does break through (With no fake breakouts) the long term Trend line ( Purple ) I see a free fall of around 100 + pips on the...
It can go both ways but if it doesn't breakthrough the support line (Purple) then a buy will be in order around the 0.80116 levels till 0.80468 but if it breaks through the support. I will leave an order around 0.79873 levels and close around 0.79509.
Buying Opportunity - A reversal hammer has formed and closed exactly on the on the former resistance. I will leave my order 10 pips above the support but if that fails. I will prepare my order for a sell as it the support has been around since 7th of October.
Buying Potential - The 78.6% Fibonacci line is nearing the Long term trend line and if it respects the support from both of them expect a long sale to the upside.
Take note - Due to the whole situation with the US election , keep an eye on it with great focus.