GBPUSD movement after breaking the latest resistance
Price Action analysis today at London trading session, we can see GBPUSD finally got out of sideway market at this week opening and closed below level 1.2475 after successfully break resistance at the end of April, formed False Break pattern then went back to the initial level.
According to the psychology of the traders, In this case the reason why the price broke the resistance are it tried to trigger the Buyers to open positions when they saw the price break the resistance and hoped it would fly them to the moon. After the Buyers got in then the price created sideway market using April, 30's US opening candlestick while it went down slowly to attract more Buyers who thought "this is just a pullback" and accumulated their Stoplosses just below the broken resistance. Meanwhile in market psychology, the price will continue to go down to stopout the Buyers at their accumulated stoplosess level before it next move.
Right now in London Trading session we can see that the price has stopped out the buyers positions and leaving some untouched positions. It won't be effective for the price to continue the downtrend when there are not many buyers in the market. As Prediction after the Buyers has been stopped out, the price will be sideway for sometimes to make new support & resistance levels or to wait a big fundamental event.
According to the psychology of the traders, In this case the reason why the price broke the resistance are it tried to trigger the Buyers to open positions when they saw the price break the resistance and hoped it would fly them to the moon. After the Buyers got in then the price created sideway market using April, 30's US opening candlestick while it went down slowly to attract more Buyers who thought "this is just a pullback" and accumulated their Stoplosses just below the broken resistance. Meanwhile in market psychology, the price will continue to go down to stopout the Buyers at their accumulated stoplosess level before it next move.
Right now in London Trading session we can see that the price has stopped out the buyers positions and leaving some untouched positions. It won't be effective for the price to continue the downtrend when there are not many buyers in the market. As Prediction after the Buyers has been stopped out, the price will be sideway for sometimes to make new support & resistance levels or to wait a big fundamental event.
Disclaimer
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.