GBPUSD Price Action Analysis – 21st May 2018
GBPUSD has been Bearish on the H4 chart. The price has kept making lower lows. Today the H4 chart made a breakout at a significant level of Support. If the price makes a full wave correction and the breakout level produces an H1 Bearish Engulfing Candle right at the breakout level, then selling the pair would get us some green pips. Let us have a look at the H4 GBPUSD chart.
Have a look at the today’s H4 candles. The first one came out as a Bearish Pin bar and the next one came out as a strong Bearish candle. The 2nd H4 candle made a breakout at the level of 1.34535 as well. If the current H4 candle is held and we get an H1 Bearish Engulfing candle after the full wave correction, then the price would reach at 1.33650. Let us have a look at the summary of the trade…
- Sell Limit Order: 1.34535
- Stop Loss: 1.34820
- Take Profit: 1.33650
- Validity: 72 hours
- Whenever possible, move the stop loss to the entry price and whenever you want, you can take profit anytime as long as you feel comfortable
The breakout that we have been talking about here is a massive breakout. If you look at the Daily chart, you will find that this is a level where the Daily candles have had their Support as well. This means the Daily traders have been eyeing on this level to see whether this level gets broken or is held. We have had an H4 breakout so far, if other things go accordingly, then we might see a big Bearish move on the H4 chart soon.
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