Welcome to our newest feature; DecaPip. The concept is simple: our professional market technician, with an exceptional system, showcases his own daily Support and Resistance levels across a broad spectrum of FX currency pairs. The most effective way to use the levels are:
- If indicated levels hold, look for the price to reverse.
- If levels are broken, look for the price to continue past to new highs or lows.
For Wednesday’s DecaPip Daily I would like to take a look at GBPUSD which is one of my favourite currency pairs to trade in the foreign exchange markets.
I would like to look at the GBPUSD from a medium term basis and how can we locate any potential trading ideas for this pair which is currently reasonably range bound.
The currency has made a series of higher daily price high’s during the last 4 trading days which gives us an indication that traders expect the currency may still be looking to advance higher until we cease to make new price high on the daily time frame.
Typically with GBPUSD we also need to see a test of a previous price area that the currency had failed to close above or was unable to brake to attract any new Sellers into the market.We can see that 5790/5800 is a excellent area to watch for any clues for the next directional move.
In the chart below I have highlighted some potential areas to watch which can be used as targets and also resistance levels.
Currently I would need to see a lower high on the daily time frame made before making any decision as to my next trade on GBPUSD and also from my own point of view I would like to see the previous price cluster re-tested.
1.5637 is maintaining resistance very well at the time of writing but the current daily candle is extremely bullish .However we cannot discount a sharp reversal if this area continues to contain price or we can be patient and wait for our R2 area if price breaks from here.
Got any questions about our new DecaPip feature? Contact Nathan at Nathan@littlefishfx.com
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