GBP/USD Idea: Trade based on how price reacts at resistance
Overview- GBP/USD have managed to stage a modest recovery after
dropping to 1.3670 level a week ago. However, price has reached a level of
resistance at present.
Analysis - As you can from the chart, GBP/USD has reached the 1.3850
resistance level. So, it is possible that this resistance level can stop the bulls and
price can drop once again. So, look out for rejection candlesticks in this level.
In case price breaks through this area strongly, then bulls will target the 1.40 level.
Probable trade set-up - Based on the above analysis, if rejection candles
are formed in the resistance area, short entries between 1.3850-1.3870 are preferred.
Disclaimer - This is simply an analysis and not a trade recommendation. The trades will be
executed only if it meets the required criteria.
dropping to 1.3670 level a week ago. However, price has reached a level of
resistance at present.
Analysis - As you can from the chart, GBP/USD has reached the 1.3850
resistance level. So, it is possible that this resistance level can stop the bulls and
price can drop once again. So, look out for rejection candlesticks in this level.
In case price breaks through this area strongly, then bulls will target the 1.40 level.
Probable trade set-up - Based on the above analysis, if rejection candles
are formed in the resistance area, short entries between 1.3850-1.3870 are preferred.
Disclaimer - This is simply an analysis and not a trade recommendation. The trades will be
executed only if it meets the required criteria.
