GBP/USD sell or buy?

8 Mar 2021

In this analysis, first of all we draw trend lines and support and resistance zones, then we track the ponds price which is at the level of the support zone(A) and also is at the floor of the trend Line(Y).
So in this case I draw falling trend line(x) which is weaker than trend line(Y) and use it as a guidance.

• scenario A: If the closed price breaks up the trend (X) with a full body candle, it is more likely to see an uptrend to resistance zone(B). (BUY)
  
• scenario B: If the closed price breaks down the trend (Y) and support zone(A) with a full body candle, it is more likely to see a down trend to support zone(C). Also if you look at the chart carefully, a head and shoulder pattern can be seen. Because head and shoulders are reversal patterns and it formed in the resistance zone(B), if the price breaks down the neck line we can expect to see scenario B more than scenario A. (SELL)
  

Caution: This is not a buy or sell signal and all of the risks of trading this idea is on your own.

12 Mar 2021

İşlem aktif

Scenario A is Happening...