GBPUSD: 1.30000 Key Resistance and How to Trade

If we talk about the daily timeframe, the market is in the uptrend. The price made a good upward movement up to 1.30000 strong resistance level. The short term pullback was logical, and I expected the deeper correction to the local support levels and the uptrend line. But the market changed the direction one more time, and now we can see the attempt to reach 1.30000 resistance again.

For us, it is a very important movement because it will be able to give trading opportunities. For buying, we don't have any reasons, but if the price bounces from 1.30000, it will be possible to open sell positions based on a confirmed reversal signal from the hourly timeframes. Also, probably we will get a double top, which is a trend reversal signal. In this case, we will be able to open sell positions based on the daily timeframe trying to catch a correction movement. The market has space for the falling, and sell signals can be profitable.

I don't expect the breakout above 1.30000 resistance as the market looks overbought. RSI and MACD tell us about it, and they will be ready to confirm the downward movement soon. But it does not mean that the resistance level can't be broken. I think that it will be logically if the market corrects the previous upward movement, bounces from the support zone, and only after that, it will continue the uptrend and pass throw the key resistance.

And what do you think about this market in the short and medium term? Please, share your ideas in comments!

تعليق:

The market stays bearish.