GBP/USD Holds Key Horizontal Support Zone

in forex •  2 months ago 

GBP/USD Key Points

  • GBP/USD higher time frame wedge breakout and retest.
  • A confluence of support with the horizontal support zone now tested on the H4.
  • Looking for an intraday retest to enter.

GBP/USD Technical Analysis

Morning team,

We yesterday were watching GBP/USD continue lower in the direction of the original trend and keeping our eye out for the following horizontal support zone:

190703-gbpusd-h4.png

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.

Waiting for price to come back to the zone, this was our thoughts at the time:

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...

If you were watching GBP/USD on your charts throughout yesterday's trading day, you would have noticed that price dove right into the midst of the support zone, putting the pair well and truly in play.

If you weren't, here are the updated charts with the hourly and M15 below:

190704-gbpusd-h1.png

190704-gbpusd-m15.png

You can clearly see on the 15 minute chart that right in the middle of the trading day, price lurched down hard and immediately found support inside the zone.

What we failed to get, was any sort of bullish momentum out of the zone and price has pretty much just ticked along since, trading in a sideways direction.

Frustrating much?!

Best of probabilities to you,

Dane.

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