Friday, August 14, 2015

gbp/usd searching for direction



After a few days of rise (well, from Monday to Wednesday) gbp/usd got stuck somewhat yesterday. It will probably search for direction today. It is highly probable that Pound will continue rising today. I marked support and resistance levels on the chart. We may assume that at these levels manipulation will take place, but that is not definite. We need to see what happens when price reaches those levels. I do expect some reversal pattern to develop as market liquidity providers will try to trigger buy stops above the resistance points or sell orders below the marked support level. 

Of course, you can also see from the chart that Asian session high and low has already been manipulated. Well, to tell the truth, Asian session low was broken and rejected. Price is working above the high of Asian session at the moment. It is also likely that the push above the high was false. Therefore, I do think we need to go to either support or resistance point and wait for a reversal there. By reversal I mean some candle reversal pattern. I will introduce those in my future points, but you can look at previous day’s low to see how a reversal pattern looks like. 

gbp/usd important support and resistance points on 15 minute chart

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