GBPUSD Retracement

The pair finally retraced towards the channel after a couple of days, with the bearish channel broken this is a nice long re-entry, the thing that we don’t like is the fact that on the 4 hour charts we appear to have a 1-2-3 formation formed at the 1.7600 resistance level which will be difficult to overcome. The last 4hour bar is in inside one and we have to wait for the breakout higher in order to be confident the move has potential, with stops under the low and the Stochastic turning in oversold teritorry should be enough to start at least an intraday bullish play.

The pair finally retraced towards the channel after a couple of days, with the bearish channel broken this is a nice long re-entry, the thing that we don’t like is the fact that on the 4 hour charts we appear to have a 1-2-3 formation formed at the 1.7600 resistance level which will be difficult to overcome. The last 4hour bar is in inside one and we have to wait for the breakout higher in order to be confident the move has potential, with stops under the low and the Stochastic turning in oversold teritorry should be enough to start at least an intraday bullish play.

 

[NP][/NP]