GBPUSD – Downside Thrust and Reversal?

The British pound is moving lower currently against the US dollar, but I think it might be completing an interesting pattern. There is a chance of it forming a double wave down duplication pattern on the daily chart. There is a monster support around the 1.5200 area in the GBPUSD pair, which might produce a bounce in the near term if the pair trades near it.

On the hourly chart, there is a support trend line, which can be breached for one final move down. Once the pair completes the downside reaction we might look to enter a buy trade.

Technical Analysis

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D1– Chart highlighting the possibility a double wave duplication pattern for GBPUSD.

Entry:

H1– We can enter a buy trade in the GBPUSD pair if it spikes down, breaks the support trend line and forms a support near the 1.5200 area with a divergence.

Target 1: 1.5350
Target 2: 1.5460
Stop Loss: Below the last low created before entering into a trade

Video Explanation:

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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.