Currency
by Seth Parker on October 8, 2018

GBPUSD Analysis – Bullish reversal

Monday on the forex market starts for us with the analysis of the GBPUSD, where on Friday, the price turned and reversed making new monthly highs. This rise was not totally expected, as till Thursday, the price was making lower lows and highs and we had no signals of a possible reversal. We wrote about this in our previous piece from the 4th of October:

“The most important line now is the pink down trendline and as long as we stay below this one, the sentiment is negative and we should continue the main trend. Our view for the nearest future remains negative. „

gbpusd chart

What changed since then is that we got rumours that we are very close to the get the Brexit Divorce deal. That helped the GBP to climb higher. The price broke the mid-term down trendline (pink) and went up, aiming the 38,2% resistances. We broke that one two, which changed the sentiment into a positive one. That was not the most important resistance though. The real game changer was the black neckline of the iH&S formation (blue rectangles). Breakout of that line gives us a proper buy signal.

Monday starts with a small pull-back but as long as we stay above the yellow horizontal support, the sentiment is positive and we should see the further rise.

By Seth Parker

Seth is a professional trader with over 10 years of experience. He specializes in the technical analysis. His main focus is on the pure Price Action. In his trading, Seth used the trends, supports and resistances and technical formations. Always, the most important thing in his strategy is the money management. Seth reached a proficiency in trading and for the past three years is doing that for a living enjoying the sun and lovely beaches of the Spanish coast.

More content by Seth Parker

Comments (0 comment(s))