Good afternoon traders,
Do you remember how we’ve been waiting for a possible reversal in GBP/USD? Seeing if we can get that continuation down after faking out above the major daily range that we’ve been following?
Well for those of you playing along at home, this was the GBP/USD higher time frame level that we have been using as our line in the sand:
Being the top of that massive higher time frame range, resistance was never going to be respected to the pip. On this blog, we always treat higher time frame resistance levels like this as zones rather than hard levels and the way price has acted here adds further weight to the strategy.
Step down into an intraday chart and we get the following:
As you can see, price has continued to reverse after faking out of the range.
What is really interesting though, is that price has actually tapped that range top level to the pip as it reactivates the line this time as resistance.
Technical analysis never ceases to amaze me.
Best of probabilities to you!
Dane Williams – Vantage FX
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Source: Vantage FX Blog