GBPUSD → Falling From Resistance! Should We Long or Short??

GBPUSD touched the Resistance Zone and fell into the 30EMA ribbon, putting a slight pause on the fall. Will the price fall further or are we about to make contact with the Resistance Zone again?


How do we trade this? 🤔

GBPUSD → Falling From Resistance! Should We Long or Short??

I do not believe a short is reasonable here because we don't have enough bear strength on the chart. Wait for another rejection at Resistance or wait for the price to fall and find support to enter a long. There are two potential long entries, at the Support Zone around 1.21150 and above the current Resistance Zone around 1.29. Both zones need to establish support and show confirmation to justify a long entry. This includes a bull signal bar closing on or near its high followed by a strong bull candle closing on or near its high.

Until then, it's best to wait on the sidelines for a better opportunity!


💡 Trade Ideas 💡

Long Entry: 1.21150
🟥 Stop Loss: 1.18650
✅ Take Profit: 1.26150
⚖️ Risk/Reward Ratio: 1:2

Long Entry: 1.29000
🟥 Stop Loss: 1.26450
✅ Take Profit: 1.34100
⚖️ Risk/Reward Ratio: 1:2


🔑 Key Takeaways 🔑

1. Trading Range after Bull Run, Bias to Long.
2. Macro Trend is Bearish, Use Caution at Weekly 200EMA.
3. If in Short Position, hold until Support Zone.
4. If not in a Position, Wait until Support to Long.
5. RSI near 53.00 under Moving Average, Bias to Short.


⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!


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