GBP/USD Breaks Out and Follows Momentum Higher

Direct from the desk of Dane Williams.

Wednesday already and for me, it's been one of those weeks where setups all remain in the formation stage.

Keep your eye on both the AUD/USD and USD/CAD setups from Monday and Tuesday because both look like they're setting up nicely, but just nowhere near paying us quite yet.

This is why you can never rely on trading as a consistent, daily income. Sometimes it just doesn't happen and forcing it just doesn't work.

Play the long game. It all evens out in the end!

Speaking of setups still in the formation stage, do you remember the GBP/USD resistance zone we spoke about on the weekend?

Here's the higher time frame level we were waiting to see how price reacted around:

GBP/USD Daily:

If you move your charts across to the left, you can see that this zone is a bit subjective but we've focused on the most recent price action to place it.

Let's wait and see how the pair reacts to the zone before blindly entering a day trading position from it.

I don't want to talk about specific intraday levels or trades, but I did want to just share this week's price action from the hourly:

GBP/USD Hourly:

You can see there was no short term level of support turned resistance to confirm that the higher time frame zone had held as resistance.

If we blindly short higher time frame resistance without waiting for this intraday confirmation, then we would have been stopped out as price didn't respect the zone at all.

That is until it went through it and retested the higher time frame zone this time as support.

I'll leave it to you to consider an entry point to get long, but after retesting the zone as support, you can find an area of short term resistance turned support in there.

A few actually.

The same setups over and over and ov...

Best of probabilities to you,

Dane.

FOREX BROKR | Hive Blog Higher time frame market analysis.

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