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 edition of DecaPip Daily I would like to turn our attention to the GBPUSD currency and the best way for us to trade this pair.
To give a very clear visual snapshot of the current state of play with Cable please see the chart below.
We can see it has effectively broken out from the wedge pattern to the downside and it is now in consolidation waiting to either attack the above line or break heavily below the support line at 1.5500 again.
The below chart shows us a triangle pattern in GBPUSD which when clearly broken should provide us finally with a strong move.
The above chart shows us a triangle pattern in GBPUSD which when clearly broken should provide us finally with a strong move.
For me the 5618-37 areas look key to the upside and we would need to see some real momentum and higher time frame closes before entering any buy or sell trades here.
Personally I would rather swing sell a hold of the triangle top or from a weak looking overshoot than sell a bottom at 1.5500 and likewise if we do close or break the triangle below I would rather keep my options open and look for buyers also .
I have never really been confident in selling low’s or buying into high’s unless there is a very strong prevailing trend in a currency and it is moving fast.Although breakout’s do work they need to be very well timed and the correct approach is waiting to see the higher time frame candle close confirmation under the relevant support or resistance to give us the signal we need to enter the trade.
Got any questions about our new DecaPip feature? Contact Nathan at Nathan@littlefishfx.com
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