GBPUSD! Bears defence line coming soon

GBPUSD!!
Price has seen strong buying pressure from the 1.1990 key long term support and did build a strong base at this very support level, but yet not been able to give bulls full control of the GBPUSD market. However, we can see a short term uptrend in place. Bears are protecting their territory on two levels, first: 1.3160 & then no bear defence line is seen till 1.3500. We now need to drill down to the weekly chart to see if weekly price dynamics are going in-line with the higher time-frame.

Cable’s weekly price dynamics are more interesting as price suggesting a strong bear’s defence line with odds favouring bears taking control from bulls soon. As we can see clearly in the chart, price approaching the Seller’s hot point, which means price has to face the trend-line resistance with the current wave being the 4th, and is expected to react well at the 88% retrace of the preceding 3rd wave & Weekly trend line also intersects the 88% retrace resistance. Clearly when/if prices do get to break above the overhead resistance, we will be expecting prices closing below the line after leaving a false break of the ceiling & we will be on a look out for Price action Sell Setups from those levels.
Now, in order for us to find the entry points, we will be drilling down to the daily chart & will see if the daily chart’s price dynamics go in-line with our short-term bullish bias for this pair.

GBPUSD DAILY.
Drilling down to the daily chart has indeed given us more clarity into recent price momentum and has clued up that current price action is indeed supporting our Short-term Bullish bias on this pair. A clear up momentum is in place and price for now is consolidating at the 23% daily retrace level of the recent swing higher. Prices can break out of here strongly and can test the weekly overhead resistance levels OR we can see prices faking the multiple inside bar setup on the downside and closing back within its range and this again will put bulls in control for at least short-term. For now, prices are bring supported by buyers at the 1.2780 near-term support level.
Sellers hot points @ 1.3160 & 1.3500
Buyers hot points @ 1.2780
Stops @ below & above the line.

Be warned of upcoming major volatility due to Brexit news. We will not personally be holding trades over the weekend due to potential price gaps at this time


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