Sophia Todorova has a background in teaching and psychology, and as such relishes the idea of assisting new traders on their journey to Forex trading success. Technical Analysis is her passion. The charts speak, and she listens.
Gbpusd is currently trading just above the up sloping daily trendline at 1.5990s after having been rejected at test of 1.6270s resistance . Although my outlook on the pair is bearish, the trendline has to be considered as support until it is breached. Should the daily trendline hold, we should see a retest of the resistance line, and price would, in effect be ranging inside a triangle resulting from these two lines. We would then need to watch out for the eventual breakout that would take place:
If, however, the bearish momentum continuers, and follows through with a breach of the up trendline, 1.5860s would be a likely target for the bears to attain, before a bounce from that support to retest the trendline to form the right shoulder of a bearish head and shoulders pattern. Further below, more intense support is seen at 1.5650.
Thanks for reading. Please do share your own views as well. Happy trading!! 🙂
Winner’s Edge Trading, as seen on: