Moving Forward - GBPUSD
Taking my analysis from my previous post, let's see if I can make better decisions for GBPUSD. I'll first place horizontal lines on the week's high and low. I'll also put a horizontal line to mark a previous high. I'll dive in the daily chart:
The weekly ATR is .0341 while the last daily ATR is .0143. I'll watch if we move 340 points and ready myself for any potential reversal.
What do I see in the chart. First I see we are above the 200 EMA but about to hit the psychological 1.56 barrier. A solid close (1.562 and up) means that we can push further upwards possibly testing the previous month's high. The previous month's high is only around 200 pips and thus achievable even if we pullback 100 points from the close of June 12.
However, the daily stochastic is showing a oversold reading. So I'm thinking that we might get a pull back mid week depending if the conviction to the upside is strong or not. I think we might breach the 1.56 and move to 1.57 then experience the pullback.
Going to the 4 hour chart, prices are near oversold range but it's not there yet. I think we can definitely move upward (depends on the movement of Monday). A strong move up and closing above 1.562 means I will enter a buy for a potential run to 1.57. I'll keep a stop loss by 1.5548.
