USD/GBP support and resistance, retracement at 0.5
I believe the market will retrace back to the previous support line because it going in long upward channel.
Looking at the previous bars, we can see that the support line was once a resistance line several times. Last time the market hit the support lone, it shot up quite considerably so I can safely assume it will do that again because markets like to follow a pattern (hence the technical analysis)
We have two options: (aggressive or conservative approach)
Aggressive: We can wait for the market to go above the support line and test the depth of the support which will hopefully shoot up.
OR
Conservative: We can wait a while for the market to retrace back to the support line when it completes it "pattern" and buy from there on.
Looking at the previous bars, we can see that the support line was once a resistance line several times. Last time the market hit the support lone, it shot up quite considerably so I can safely assume it will do that again because markets like to follow a pattern (hence the technical analysis)
We have two options: (aggressive or conservative approach)
Aggressive: We can wait for the market to go above the support line and test the depth of the support which will hopefully shoot up.
OR
Conservative: We can wait a while for the market to retrace back to the support line when it completes it "pattern" and buy from there on.