GBP/USD Continues Lower in Direction of Original Trend

in forex •  2 months ago 

GBP/USD Key Points

  • GBP/USD daily wedge break out.
  • Price then continues lower, outside of the wedge, in the direction of the original trend.
  • 4 hourly support zone to watch out for, marked.

GBP/USD Technical Analysis

Morning team,

I wanted to do a quick continuation of the GBP/USD wedge setup that we spoke about last week. Click the link and take a look at the wedge breaout that had already played out.

Now we're refreshed, take a look at the updated GBP/USD 4 hourly chart below:

190703-gbpusd-h4.png

You can see that after breaking out of the wedge, retesting it and giving us a nice little long, that price has since continued lower in the direction of the original trend.

While still outside the wedge, price has now almost returned to the swing low that formed the final bottom point of the pattern. A nice place to start to look for support.

The zone I've drawn here on the 4 hourly is a confluence of the short term resistance candle and also the swing low point of the first point of the bottom line in the wedge. This is where I intend to look for a pause in price.

If price does in fact hold this zone as support, it's from there that I'll zoom into a lower time frame chart to find a short term area of intrday resistance turned support that I can use to enter long around.

Keep this one on the watchlist coming into all the US employment data to come at the end of the week...

Best of probabilities to you.

Dane.

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