Here we have a key support and resistance level as show by purple arrows ( resistance ) orange arrows ( support ) When price comes to this level it normally fails to break it and price is currently sitting at this level using it at support.
Now look at the previous 4H candle that was formed and closed, it had a long lower shadow ( spike ) that tried to break this level but the bears ( sellers ) were not strong enough and the bulls ( buyers ) took control pushing price just above our key level before closing, this is a key indication that price is going to go long again.
Be a wear when trading GBP pairings though because of Brexit bull#hit can make pairings very volatile around key votes or news, so please trade with correct risk management!
Now look at the previous 4H candle that was formed and closed, it had a long lower shadow ( spike ) that tried to break this level but the bears ( sellers ) were not strong enough and the bulls ( buyers ) took control pushing price just above our key level before closing, this is a key indication that price is going to go long again.
Be a wear when trading GBP pairings though because of Brexit bull#hit can make pairings very volatile around key votes or news, so please trade with correct risk management!