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
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.