Whats up traders, I hope you are all having a good start to your trading week.
Here we have GBP/USD on the 4H chart.
Price has recently been rallying since price bounced on the structure support zone at 1.3300. Price is now approaching a side-wards resistance level at 1.3430.
At this present moment, there is 2 primary outcomes I have in mind for the GBP/USD trade. Price can either carry on past structure resistance or break down for a correction. I have more specific information about each trade outcome below.
The likely trading scenarios are:
- Price breaks side-wards resistance structure at 1.3420 and carries on to the upside. If this happens, it will show bulls have strong control over the pair and we want to be buyers. I will want to see a retest on the side-ward resistance turned support structure before I considered a buy in GBP/USD.
- Price completes a move to side-ward structure at 1.3420 and has a correction down move, before eventually breaking the side-wards resistance structure. This scenario would show GBP/USD to be slightly weaker than the above scenario (as it failed to breakout) but a correction within structure is natural,. It just means we might have to wait a little while longer to get the side-wards resistance breakout and the buy opportunity.
A down move before a breakout might signal that a correction is required to confirm and create the necessary momentum for a structure breakout. So either scenario, GBP/USD deserves a place in the watch list.
I will be keeping a sharp eye on GBP/USD throughout the week.
I will be updating this idea in real time if it exceeds 20 likes.
Here we have GBP/USD on the 4H chart.
Price has recently been rallying since price bounced on the structure support zone at 1.3300. Price is now approaching a side-wards resistance level at 1.3430.
At this present moment, there is 2 primary outcomes I have in mind for the GBP/USD trade. Price can either carry on past structure resistance or break down for a correction. I have more specific information about each trade outcome below.
The likely trading scenarios are:
- Price breaks side-wards resistance structure at 1.3420 and carries on to the upside. If this happens, it will show bulls have strong control over the pair and we want to be buyers. I will want to see a retest on the side-ward resistance turned support structure before I considered a buy in GBP/USD.
- Price completes a move to side-ward structure at 1.3420 and has a correction down move, before eventually breaking the side-wards resistance structure. This scenario would show GBP/USD to be slightly weaker than the above scenario (as it failed to breakout) but a correction within structure is natural,. It just means we might have to wait a little while longer to get the side-wards resistance breakout and the buy opportunity.
A down move before a breakout might signal that a correction is required to confirm and create the necessary momentum for a structure breakout. So either scenario, GBP/USD deserves a place in the watch list.
I will be keeping a sharp eye on GBP/USD throughout the week.
I will be updating this idea in real time if it exceeds 20 likes.
