GBPUSD - A rough analysis of the big pictureHi Traders!
As you can see, the market was in a strong Uptrend for quite a time.
After that, it made one Top, pulled back, came back up again and failed to make a higher High.
Since then, it is moving down.
The market started a descending Triangle in which the market made lower highs, but equal lows.
That pressurized the Support, which finally broke out.
The first Break was a Fake-out while the second break was a "real" break.
Since the market broke out, it respectd the descending channel, which is the extension of the descending Triangle.
At this moment, the market is at
- the weekly Support and at
- the bottom of this channel.
However, we would wait for other confirmations on the lower TFs which can give you a proper Setup.
This idea could serve as the "big background" of your trade.
Try to not strive for a too high TP as the forex industry works on both sides.
By going into one direction, it's good for one currency, but bad for the other.
If you have any questions or something to add or criticise, feel free to comment!
Thanks and successful Trading :-)!
