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 and price is unable to break the resistance.
Analysis - As you can from the chart, GBP/USD has reversed from the 1.3850
resistance level . So, it is possible that this resistance level can stop the bulls and
price can drop once again. A strong break through this area will however indicate that
bulls will target 1.40 but that seems unlikely as of now.
Probable trade set-up - Based on the above analysis, and looking at the fact
that rejection candles have formed in the resistance area , short entries between
1.3840-1.3850 are preferred with SL above the resistance area and TP at 1.3720
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 and price is unable to break the resistance.
Analysis - As you can from the chart, GBP/USD has reversed from the 1.3850
resistance level . So, it is possible that this resistance level can stop the bulls and
price can drop once again. A strong break through this area will however indicate that
bulls will target 1.40 but that seems unlikely as of now.
Probable trade set-up - Based on the above analysis, and looking at the fact
that rejection candles have formed in the resistance area , short entries between
1.3840-1.3850 are preferred with SL above the resistance area and TP at 1.3720
Disclaimer - This is simply an analysis and not a trade recommendation. The trades will be
executed only if it meets the required criteria.