An analysis of the GBPUSD for the past few weeks. As we can see there was a long consolidation zone (long rectangle) which only broke downwards in week 49. It created a third zone where a reversal marked by W was found. However, the reversal is taking a bit too long to break upwards away from its zone, therefore, it is a point to be cautious of.
Apart from the time taken for the pair to break upwards, there is no other worrying sign. I expected NFP to bring the pair up, above the zone, but it failed to do it, so probably we need to wait for the next high impact news in week 50.
It is a potential pair to take a long position, I exited my long position before the end of week 49 as I do not want to carry it over the weekends. I am still in the view that opportunity will present itself to long for the medium trend traders. I will restrict myself to only long trade since this rise could be a huge one thus making counter trend trade a high risk and low reward endeavour.
The signal to enter will come when the market opens with candlestick pattern and price action.
Apart from the time taken for the pair to break upwards, there is no other worrying sign. I expected NFP to bring the pair up, above the zone, but it failed to do it, so probably we need to wait for the next high impact news in week 50.
It is a potential pair to take a long position, I exited my long position before the end of week 49 as I do not want to carry it over the weekends. I am still in the view that opportunity will present itself to long for the medium trend traders. I will restrict myself to only long trade since this rise could be a huge one thus making counter trend trade a high risk and low reward endeavour.
The signal to enter will come when the market opens with candlestick pattern and price action.
