Good morning traders!
🔸Today we are analyzing the GBP / USD chart looking for a bearish opportunity for the medium to long term.
Why a bearish position?
🔸In the weekly chart, we can see that the price is facing a solid resistance zone. There were five interesting rejections in this same area in the last two years, generating a bearish movement after the bounce.
🔸Because of the length of the previous lows, we consider that the potential new movement could reach the Support Zone again.
🔸Then, if we descend to the Daily chart, we see that after the Resistance zone rejection, the price broke the Ascending Trendline.
🔸After the breakout, there was no clear trend for the last two months. Although it has generated a bullish recovery, the movement has been very slow and not very volatile, typical of a corrective phase.
🔸Because of this, what we are waiting to confirm the bearish view is a breakout of the current corrective structure.
🔸Until this does NOT happen, we will not consider any bearish position.
🔸The point of invalidation of the bearish view is if the price breaks to the upside the Resistance zone.
🔸Remember always to trade confirmations, reacting to price behavior, and not trying to anticipate it.
🔸Today we are analyzing the GBP / USD chart looking for a bearish opportunity for the medium to long term.
Why a bearish position?
🔸In the weekly chart, we can see that the price is facing a solid resistance zone. There were five interesting rejections in this same area in the last two years, generating a bearish movement after the bounce.
🔸Because of the length of the previous lows, we consider that the potential new movement could reach the Support Zone again.
🔸Then, if we descend to the Daily chart, we see that after the Resistance zone rejection, the price broke the Ascending Trendline.
🔸After the breakout, there was no clear trend for the last two months. Although it has generated a bullish recovery, the movement has been very slow and not very volatile, typical of a corrective phase.
🔸Because of this, what we are waiting to confirm the bearish view is a breakout of the current corrective structure.
🔸Until this does NOT happen, we will not consider any bearish position.
🔸The point of invalidation of the bearish view is if the price breaks to the upside the Resistance zone.
🔸Remember always to trade confirmations, reacting to price behavior, and not trying to anticipate it.