Looking on the daily time frame and you will see that history may repeat itself 90% sure of it. Even tho we have news going on wednesday for GBP to bear in mind. RSI and STOCH indicator is showing that it's over bought and the only thing that we're doing is looking for bearish confluence (or signals).
I'm a long term price action trader so I see very big...
So as an engulfing trader I see GA setting up on the daily for a long term pullback to 1.7150. If you use a fibo retracement you will see that price rejects between 50 and 38.2 level. For more confluence I pulled out the RSI and Stoch; you clearly see that price is over bought and now sellers is starting to come into the market.
We do have some news on Wednesday...
After breaking the major resistance we see that the market is coming back down to do a test to that recent area that was broke. Now we either going to see the market respecting the level and bounce back up or go back into the past major area.
Pulling out the Fib we can see that that it's in the .382 retracement, so all we really looking for is more bullish...
Looking on the weekly chart for trend structure and as an engulfing trader I saw the market moved to a support level around 137.303 and 137.202. Last week broke out of the descending wedge that you see or flag pattern. It look like this week is going to confirm that breakout to the downside and may move all the way to 126.761
