The steep downtrend that was in play on the GBPUSD came to a grinding halt when the market bottomed out on a weekly support level – drifting sideways in range bound conditions for the last month. The Overall pressure still seems to be down with the USD being very strong at the moment, but a bullish rejection candle formed at the range bottom last session as prices rejected moves lower into the range bottom.
If this setup plays out, we could see another test of the range resistance markets on the chart above, where we could look to enter via sell signals, or if the support is attacked again, and breached by price – then we can wait for ‘breakout and re-test’ type trades off the weekly level and short via price action sell signals.
akka_faiz
tonight got NFP..how do u deal with it?
Replying to: akka_faiz
Dale WoodsAuthor
The range has failed as support was breached, there is no long play here any more. Leave this alone and let NFP play out, it may end up becoming a breakout trap for people who are short. Best advice is to wait for re-tests of the support level, and confirm it is acting as resistance via a bearish price action reversal signal as a trigger to get short. This probably won’t happen until next week.