GBP/USD Support/Resistance Level Holding

After having watched GBP/USD retest this support/resistance level for a week now, price action is looking like giving us the bearish confirmation we have been looking for.

Bringing up a Cable daily chart on your MT4 platform, you can see that price has failed to make any significant break higher and after printing a couple of indecision candles within the resistance zone, we have most recently closed with both a long wick and bearish body:

GBP/USD Daily:
Click on chart to see a larger view.

From here, I want you to zoom into an intraday chart and start to think about the trading opportunity that this higher time frame resistance level has presented us.

Can you see any pull backs into short term support turned resistance? How are you looking to trade this level and is it even from the short side?

Posting intraday levels on this blog starts to flirt within the domain of trade recommendations, which obviously is NOT what this blog is all about. I want to help identify the major levels to look out for and then open up the intraday levels to discussion on social media.

These intraday levels have to come from you! 🙂

Define your levels, then trade your levels. If you manage your risk properly, then this mentality will keep you on the right path.

Best of probabilities to you!

Dane Williams – @VantageFX

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Source: Vantage FX Blog