The GBP/USD pair bounced from OUR Identified support zone on a 4 hour time frame. The support zone was given in our analysis on the 29th Feb and the risk mentioned was 36 pips and the price has moved in profit of 90 pips by touching the mark of 1.3960. That is more than 2:1 reward to risk ratio which many traders target for their day trading. The price has also moved above its 20 day moving average which confirms that the bears are losing their control of the price and the next resistance will be near the 50 and 100 day moving average. For the uptrend to continue , we need to break both these averages and stay firmly above them.
The RSI is trading in line with the price action and this confirms that the current price movement has a momentum behind it.
Important zone
1.3872-1.3836 Minor Support
1.3685-1.3653 Major Support
1.4167-1.4140 Minor Resistance
1.4305-1.4278 Major Resistance
Disclosure & Disclaimer: The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.
by Naeem Aslam