Long

GBPUSD Weekly S/R| 200DMA| .50 Fibonacci| Local S/R

Evening Traders,

Second Analysis – GBPUSD- testing Weekly S/R that has technical confluence, a bounce here is probable.

Points to consider,
- Impulsive Price Action
- Weekly S/R (Support)
- .50 Fibonacci (Resistance)
- Stochastics Buy Cross
- Evident volume Climax

GBPUSD’s immediate Price Action has been impulsive to the downside, currently testing a key Weekly S/R, a strong support that has confluence with the 200 DMA and the .618 Fibonacci. This added confluence increases the probability of a bounce.

The .50 Fibonacci is immediate resistance; price is likely to test this level with a reaction.

The Stochastics has a valid buy cross in over-extended conditions along with the RSI. A reversion to their mean is probable; this will coincide with a bounce in Price.

A volume climax node is evident; this usually indicates a temporary bottom as price finds its equilibrium.

Overall, in my opinion, GBPUSD is a valid long with defined risk; price action is to be used upon discretion/ management of trade.

Hope this analysis helps

Thank you for following my work!

And remember,

“Trade What’s Happening…Not What You Think Is Gonna Happen.” – Doug Gregory

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