GBPUSD – On the daily chart. We can see that the pair has been in a downtrend for more than a week. This can mean that the probability for a rebound is increasing although we won’t know how far up the rebound could be except to make some calculated predictions based on what is on the chart.
Today, we the price rebounding at S1 support and we are about 100 over pips away from the 15 ema.
If the daily bar closes like what is seen in the chart now or better, even higher, I would expect tomorrow to be another bullish candle. Some traders who would want to go long would wait for the retrace back down to around half of today’s green candle before entering.
Also, I projected the pink line above which connected the swing highs of the recent moves to the bottom part of the swing low. You can see that the price exceeded the pink line. It went below the line but now is back up above it.
The 1.5165 area is a support area and buyers came in at that level. For them to bring the price back up to green after many red bars tell me that the buyers there are the big boys with the big money. Some will take profit there and some are buying for a possible rebound back up at least to test the 15ema and the Pivot.
Stochastic is showing oversold as well. But remember, never buy or sell based on stochastic. It just supports a trade and is not used as a main signal.
Trade well and always protect your capital with a stop loss.
~ Ardy Ismail