Categories: Technical Analysis

Buy dips in GBPUSD

Last Friday on NFP day the pound bounced off of the down trend line well seen on the daily chart. However I think the pair has reached temporal bottom and we should see some up moves in the following weeks. Below you can find the technical reasons for my bullish opinion.

Technical Overview:
W1: Over 20 candles ride on the Bollinger Bands, inverted hammer + equal tails pattern

H4: Break of channel and important resistance

Entry:
H4: We can expect the pair to create a small rally or a flat move and pattern (wedge, flag) before pushing down one more time. We are looking for hidden bullish divergence to complete not lower than the up trend line. Remember that 1.5060 support zone along with the up trend line must hold. Breaking it down would mean invalidation for this setup.
Target 1: 1.5280
Target 2: 1.5350
Target 3: 1.5550
Stop Loss: below 1.5060 and the up trend line

Video Explanation:

Vladimir Ribakov

Following 11+ years of trading experience, trading my own accounts as well as for hedge funds and brokerages, I have decided to fulfill my destiny and to personally mentor Forex and Commodities traders. When I released the “Broker Nightmare” (software that hides trades from brokers) 8 years ago, I found an overwhelming number of frustrated people who genuinely wanted to learn how to trade the Forex market, but instead found themselves scammed and misled. Over the years I have also release other trading systems based on my trading strategies, and met a lot of people on my worldwide Forex seminars. We’ve formed a close Forex community and we meet once or twice a year in various locations in Europe.