GBPUSD Swing High| Liquidity Grab| Local Support| .618 Fibonacci

2 באוג׳ 2020

Evening Traders,

Today’s analysis – GBPUSD – in a technical area of confluence, a retracement to the .618 Fibonacci is likely.
Points to consider,
- Local trend swing high
- Equal highs ( Liquidity grab)
- Local support confluence (.618 Fibonacci)
- Oscillators overextended
- Volume increasing

GBPUSD is testing a key level with equal highs. This increases the probability of a liquidity grab.

Local support is the immediate target which is in confluence with the .618 Fibonacci. A retest and respect of this area will establish an S/R Flip.

Both oscillators are over extended which is a sign that the market is overbought and due for a retrace. There is a clear influx of volume, this solidifies that GBPUSD is at a key pivot, follow through will fuel the direction.

Overall, in my opinion, a short is valid with defined risk. Price action must be used upon discretion/management of the trade.

What are your thoughts?

Thank you for following my work!

And remember,

“There is a huge difference between a good trade and good trading.” – Steve Burns