Good Morning traders! Today we will analyze GBP/USD, as it is presenting a bullish opportunity for the short term.
We are going to analyze the technical aspect of this chart:
🔸First of all, we see that the bearish trend was broken (descending channel). This is the first reason why we are going to look for a bullish position.
🔸Since the breakout, the price remained in a consolidation. What we observe now is that the corrective pattern completed an A-B-C type correction.
🔸To add to the previous points, the structure is making a throwback to the broken trend line.
🔸Also, the price is facing a demand zone in a lower timeframe.
Conclusion: we have many points that converge in a potential bullish movement in the short term, increasing the chances of this. To add a bit of security in this trade, we consider that the optimal point to enter the market is above wave B, since in this way, we avoid a fakeout of the structure if it happens.
Of course, we must not forget that it is just another trade and that the chances of it failing ALWAYS exist.