GBPUSD - WHY the market is going to BREAK the Resistance

Hi Traders!
The market is in a Long-term Downtrend, but also in a Shortterm strong Uptrend.

As you can see the price is at the moment at two Resistances:

• The descending Trendline which is a Resistance and
  
• the Resistance where the market is now.
  

We predict that the market is going to break the Resistance(s).
Why?
First of all let's check out which values are giving Support to the market:

• The ascending Trendline and
  
• the 20MA the market is respecting.
  

Now this is of course not enough.
Let's see what the behavior of the market is:

If a Retracement is strong, what does the market do normally?
It bounces back from that Level.

But look at the candles now.
They seem to stick on that Resistance.

This is often an indication for traders, that the market is going to break a particular Level.
We recommend to trade the Breakout with a Retest to avoid False Breaks!


Thanks and successful Trading :)!

Yorum:

The RED BOX, but in big: