GBPUSD Short Term Reversal

GBPUSD has bounced of the year’s low formed last friday at 1.5265; after a failed attempt to break through we witnessed a slow move upwards that seems to accelerate. The pair broke above trendline marking the slope of the bearish move and has transformed that from resistance into support. price action on the 4 hours and smaller timeframes also comes to help the short term bias change as the pair formed several exhaustion candles inside bars and doji’s before jumping above 1.57.

GBPUSD has bounced of the year’s low formed last friday at 1.5265; after a failed attempt to break through we witnessed a slow move upwards that seems to accelerate. The pair broke above trendline marking the slope of the bearish move and has transformed that from resistance into support. price action on the 4 hours and smaller timeframes also comes to help the short term bias change as the pair formed several exhaustion candles inside bars and doji’s before jumping above 1.57. First significant resistance is the 1.6000 where we expect bearish traders to start building new short positions.

 

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