Market Update – GBPUSD confluence for a long opportunity
As usual, our analysis starts from higher timeframe such as the daily chart, where we can able to} see we are in a bullish trend. now price is retesting support and we can for this reason search for long opportunities in lower timeframe. in the 4hr chart we can see we’ve completed a Bat formation and we put an engulfing candle right at the structure level. in addition we ar currently at 1.618 extension of the most recent downward move and we’re sitting on a psychological number that often gives support to price. If that wasn’t enough we’ve just exited an OVERSOLD condition. All those reasons together make me predict that we’ll see an upward move. I’ve entered the market long at 1,2414 with 1st target at 1,2482 (stop loss at 1:1RR), second target could line up with bat’s second target level.
In Other View Point – GBPUSD at strong support zone FIB levels
GBPUSD is currently at a strong fib / harmonic zone. Price has already hit the 200% level of the prior correction. As for lower levels I just dont have enough data to find the next target if price continues lower, ill need a correction of some form to get those levels. For now this is the strongest one. Im expecting this level to give some support to the upside. Any pull back to the zone could be a low risk entry for your method of trading.